All you wanted to know about RGESS

Below is the verbatim transcript of an interview aired on CNBC-TV18.

Q: The Rajiv Gandhi Equity Savings Scheme (RGESS) has got some more sops added to it, the limit has been increased and the time period for which one can put in money has been increased. Is all this good enough, how has been the performance on the ground and what would you advise people to do?

A: Rajiv Gandhi Equity Savings Scheme has come up with enhanced features into it so more steroids in it in terms of taking call from retail investors' point of view. The limit has gone up from 10 lakh to 12 lakh and that is positive because that now covers 30 percent tax bracket people also.

If one goes by the simple mathematics then there is a potential to save Rs 7,500, which was earlier only Rs 5,000. It has spread out over three years, is also an advantage because it helps one to take benefit over three years period.

Therefore, the goodies are very much in advantage and another thing, which is a by-product to this is that finance minister and government is trying to encourage people to open demat accounts because somewhere equity cult and culture has to build in. Right now foreigners are buying more equity than Indians. 

Union Budget 2013 - 14: Tax sops in RGESS extended to 3 years: Chidambaram

Q: A lot of people who know about market are probably looking for it in the names of their sons or relatives who have not already invested in market. Is that how it can be interpreted, is that an available loophole or is it that something has been put in and one cannot use this ploy to get a relative in who does not have share positions already?

A: It is not a loophole. It is a normal product because most of the time these kinds of products with this kind of tax benefits does not takeoff immediately even the equity linked saving schemes (ELSS) took their time to build up and even with RGESS. Therefore, the most knowledgeable customer will take the benefit of these kinds of features and tax planning and others will follow slowly and effectively.

However, one good thing, which has started happening, is in the intermediation circles people have started going back to the investors and started talking about it. I think that is a big difference, which has happened because of RGESS, which was not there earlier and that is a very big positive.

Caller Q: I want to purchase one health insurance policy for myself and for my daughter. I would like to prefer ICICI so what care should I take for that?

A: ICICI Lombard is a good product to have. They have good servicing and technology to support, which will help you buy policy. However, along with this if you can look at claim settlement ratio and also look at what kind of servicing team they have. Do they have an internal servicing ream or they have third party servicing team. If these two filters can also be played, it will help you buy a good product.

So, keeping these two filters along with ICICI Lombard we will advice if you can look at Bajaj Allianz because Bajaj Allianz has better claim settlement ratio in the industry and they have in-house servicing team, which helps you settle your claims much more effectively over a period of time. Another factor is loading that means if you go in for increase cover later point of time, what kind of loading happens. So, that is where it is comparative between ICICI and Bajaj Allianz but between ICICI and Bajaj Allianz you can choose anyone of them. 

AT&T Adds Back-Up for Windows Phone8 - Analyst Blog

The second-largest U.S. carrier, AT&T Inc. (T), has extended its mobile content storage facility for smartphones running on Microsoft Corporation's (MSFT) Windows Phone8 OS (operating System).

Termed as AT&T Locker, the storage facility is based on the cloud and offers 5GB of back-up space for mobile content. The new application comes with an easy upload feature, which allows AT&T customers to upload images, videos, documents and music files automatically from the Windows Phone to AT&T Locker.

The photos and documents are transferred via AT&T wireless network or Wi-Fi and are stored on the cloud-based facility, in a secured location. Customers can also share their images on social media like Facebook and Twitter directly from AT&T Locker.

The application is already available for AT&T customers using Apple Inc.'s (AAPL) iPhone or Google Inc.'s (GOOG) Android-based smartphones. AT&T Locker is available for free to Windows Phone8 customers, with an option to buy additional space for high data users.

Presently, AT&T's website does not show the Locker option for Windows' customers. AT&T customers can download the storage application from the Windows phone app store. Navigating the application is also quite easy. Apart from having dedicated pages for images, music and files, users can access the 'More' page to set up their own social media sites.

Arch rival, Verizon wireless, has already introduced cloud-based data storage and restoring facility for its Android and iOS customers, with the former having an additional ability to save call logs and messages. However, Verizon offers only 500 MB free storage and charges for additional space.

Such apps will satiate the demand for high data storage capacity of the U.S. customers, who use their smartphones to share and store photos and videos extensively. Additionally, AT&T Locker will be beneficial for customers who are not satisfied with the 7GB of free stor! age provided by SkyDrive.

Currently, AT&T carries a Zacks Rank #3 (Hold).

Yum! Brands Likely to Beat in 2Q - Analyst Blog

Hot Penny Stocks To Invest In Right Now

We expect restaurateur Yum! Brands Inc. (YUM) to beat expectations when it reports second quarter results on Jul 10 after the closing bell.

Why a Likely Positive Surprise?

Our proven model shows that Yum! Brands is likely to beat earnings because it has the right combination of two key ingredients.

Positive Zacks ESP: Expected Surprise Prediction or ESP (Read: Zacks Earnings ESP: A Better Method) of Yum! Brands, which represents the difference between the Most Accurate estimate (55 cents) and the Zacks Consensus Estimate (54 cents), is +1.85%. This is a meaningful and leading indicator of a likely positive earnings surprise for shares.

Zacks Rank #3 (Hold): Yum! Brands currently carries a Zacks Rank # 3 (Hold).

The combination of the stock's Zacks Rank #3 and +1.85% ESP makes us confident of an earnings beat this quarter.

What is Driving the Better Than Expected Earnings?

Yum! Brands' Chinese division, the largest contributor to its revenue stream, continues to be hurt by negative same-store sales growth since the recent past as the division has been struggling with the adverse media coverage on the quality of chicken supplied to China KFC and the outbreak of the H7N9 Avian flu in early-April.

However, the scenario seems to be improving slowly. The rate of decline has moderated, as evident from the 19% decline in comps in May which was much less than the 29% reduction reported in April.

Yum! expects to record positive same-store sales in the fourth quarter of 2013. The company has implemented several quality assurance programs, marketing campaigns and various promotional offers to boost its sales which should lead to better-than-expected earnings this quarter.

Apart from Yum!, another restaurateur McDonald's Corp. (MCD) also seems to be back on track in China.

Other Stocks to Conside! r

Other than Yum! Brands, we also see likely earnings beat coming from two companies this earnings season.

Buffalo Wild Wings Inc (BWLD): Earnings ESP of +2.56% and a Zacks Rank #2 (Buy).

Kraft Foods Group Inc. (KRFT): Earnings ESP of +5.97% and a Zacks Rank #2 (Buy).

CenterPoint's Gas Rate Hike OK'd - Analyst Blog

CenterPoint Energy, Inc. (CNP) won approval from the Mississippi Public Service Commission for natural gas rate hike, effective immediately. The substantial mismatch between the company's actual investment returns from modernization initiatives and allowed return drove the increase in the natural gas rate.

Per this year's rate adjustments, it was found that CenterPoint's returns were much less than its investments, resulting in the rate hike. Per the new rates, the company's residential and small commercial customers will now have to pay an extra $1.58 and $4.00 on monthly bills, respectively.

As a result of this rate increase, the minimum charge for residential customers will be $10.55 per month, up nearly 8% from $9.77. The Mississippi customers will pay 13.2 cents, up 17.8% for every 100 cubic feet of natural gas supplied for pipeline maintenance and to recoup overhead expenses.

To recuperate the cost of natural gas, additional charges included will bring the average monthly residential bill to around $34 with the average base bill rising 11% to $15.83 from $14.25.

For small commercial customers the total bill will climb to $15.09 from $13.20 with the average base bill before additional charges climbing 10.8% to $40.75. This entails customers to shell out 21 cents per 100 cubic feet reflecting an increase of 1.7 cents.

CenterPoint expects the positive rate changes to increase revenues by $2.9 million and has also agreed to utilize 55% of its asset management charges to cut gas costs by $2 million.

The company continues with its strategic investments to strengthen its infrastructure. CenterPoint Energy plans to make investments of $6.8 billion between 2013 and 2017 for maintenance and upgrade of its assets.

However, the company's modernization efforts will be put to test given the violent hurricanes predicted to hit operations in CenterPoint's service areas in the coastal regions. This along with a still fragile U.S economy will contin! ue to act as a deterrent for the company.

At the moment CenterPoint Energy has a Zacks Rank #4 (Sell). However, other utilities currently looking well positioned in the industry are Zacks Ranked #2 (Buy) DTE Energy Company (DTE), Entergy Corp. (ETR) and Calpine Corp. (CPN).

Top 10 Canadian Stocks To Buy For 2014

A lawsuit filed yesterday by the state of Arkansas and the U.S. government against ExxonMobil's (NYSE: XOM  ) pipeline division seeks penalties for a March 29 pipeline rupture that spilled an estimated 150,000 gallons of crude oil, the Arkansas Attorney General announced.

The suit filed in U.S. District Court in Little Rock, Ark., was brought on behalf of the U.S. Environmental Protection Agency and the Arkansas Department of Environmental Quality (ADEQ). The feds and the state are seeking civil damages as well as a judgment against Exxon for costs associated with the cleanup and damages caused by a rupture of its Pegasus pipeline in Mayflower, Ark.

According to the suit, Canadian heavy crude oil spilled from the ruptured pipeline and flowed into nearby waterways, through the local neighborhood, and into a lake.

Top 10 Canadian Stocks To Buy For 2014: 3M Company(MMM)

3M Company, together with subsidiaries, operates as a diversified technology company worldwide. The company?s Industrial and Transportation segment offers tapes, coated and non-woven abrasives, adhesives, specialty materials, filtration products, energy control products, closure systems for personal hygiene products, acoustic systems products, and components and products that are used in the manufacture, repair, and maintenance of automotive, marine, aircraft, and specialty vehicles. Its Health Care segment provides medical and surgical supplies, skin health and infection prevention products, inhalation and transdermal drug delivery systems, dental and orthodontic products, health information systems, and food safety products. The company?s Display and Graphics offers optical film solutions for LCD electronic displays; computer screen filters; reflective sheeting for transportation safety; commercial graphics sheeting and systems; and mobile interactive solutions, includin g mobile display technology, visual systems products, and computer privacy filters. The company?s Consumer and Office segment provides office supply products, stationery products, construction and home improvement products, home care products, protective material products, certain consumer retail personal safety products, and consumer health care products. Its Safety, Security and Protection Services segment offers personal protection products, safety and security products, cleaning and protection products for commercial establishments, track and trace solutions, and roofing granules for asphalt shingles. The company?s Electro and Communications segment provides packaging and interconnection devices; fluids that are used in the manufacture of computer chips, and for cooling electronics and lubricating computer hard disk drives; high-temperature and display tapes; insulating materials, including tapes and resins; and related items. The company was founded in 1902 and is based in St. Paul, Minnesota.

Advisors' Opinion:

• [By Elmerraji]

  3M Company (MMM), together with subsidiaries, operates as a diversified technology company worldwide. The company has raised distributions for 53 years in a row. The 10 year annual dividend growth rate is 6.10%/year. The last dividend increase was 4.80% to 55 cents/share. Analysts are expecting that 3M will earn $6.33/share in 2012. I expect that the quarterly dividend will be raised to 57.50 cents/share sometime in 2012. Yield: 2.60%

• [By Victor Mora]

  3M provides technology solutions and services to companies participating in a multitude of industries worldwide. The stock is seeing an explosive move higher which has taken it to all-time high prices. Earnings and revenue figures have been increasing over most of the last four quarters, producing mixed feelings among investors. Relative to its peers and sector, 3M has been a year-to-date performance leader. Look for 3M to OUTPERFORM.

Top 10 Canadian Stocks To Buy For 2014: STMicroelectronics N.V.(STM)

STMicroelectronics N.V., an independent semiconductor company, engages in the design, development, manufacture, and marketing of a range of semiconductor integrated circuits and discrete devices. Its products include discrete and standard commodity components, application-specific integrated circuits, custom devices and semi-custom devices, and application-specific standard products for analog, digital, and mixed-signal applications. The company also offers subsystems and modules for the telecommunications, automotive, and industrial markets comprising mobile phone accessories, battery chargers, ISDN power supplies, and in-vehicle equipment for electronic toll payment, as well as provides Smartcard products. Its products are used in various microelectronic applications consisting of automotive products, computer peripherals, telecommunications systems, consumer products, industrial automation, and control systems. The company sells its products through distributors and ret ailers. STMicroelectronics N.V. was founded in 1987 and is headquartered in Geneva, Switzerland.

Top Gold Companies To Buy For 2014: PennyMac Mortgage Investment Trust(PMT)

PennyMac Mortgage Investment Trust is based in the United States.

Top 10 Canadian Stocks To Buy For 2014: Chipotle Mexican Grill Inc.(CMG)

Chipotle Mexican Grill, Inc. develops and operates fast-casual, fresh Mexican food restaurants in the United States, Canada, and England. Its restaurants primarily offer burritos, tacos, burrito bowls, and salads. As of December 31, 2011, it operated 1,230 restaurants, which includes 1 ShopHouse Southeast Asian Kitchen. Chipotle Mexican Grill, Inc. was founded in 1993 and is based in Denver, Colorado.

Advisors' Opinion:

• [By Fitz Gerald]

  Chipotle Mexican Grill (CMG) has the potential to be the McDonald’s (MCD) o f the next half-century … in part because this high-quality burrito shop was spun off from McDonald’s in 2006 … so management has been taught well. Revenues are growing steadily and profit margins are consistently in the high single digits, which is great in the restaurant industry. (It’s my son’s favorite restaurant, but I’m not the analyst who submitted it.)

• [By Victor Mora]

  Chipotle Mexican Grill provides consumers with quick, delicious, and healthy food options on a daily basis. The company recently delivered an earnings report that beat analyst expectations. The stock has been on a strong surge to higher prices and sees no signs of slowing just yet. Over the last four quarters, earnings and revenue figures have been increasing which has produced very pleased investors. Relative to its peers and sector, Chipotle Mexican Grill has been a year-to-date performance leader. Look for Chipotle Mexican Grill to continue to OUTPERFORM.

Top 10 Canadian Stocks To Buy For 2014: Apollo Gold Corporation(BRD)

Brigus Gold Corp. engages in the extraction, processing, refining, and production of gold and other by-product metals primarily in North America. The company principally produces gold and silver. It primarily owns the Black Fox Complex and Black Fox Mill properties located in the Timmins Mining District in the Province of Ontario, Canada; the Goldfields project located in the Lake Athabasca region of Saskatchewan, Canada; and the Ixhuatan property located in the state of Chiapas, Mexico. Brigus Gold Corp., through its joint venture, holds interests in the Ampliacion Pueblo Viejo and Loma El Mate gold exploration projects located in the Dominican Republic. The company was formerly known as Apollo Gold Corporation and changed its name to Brigus Gold Corp. in June 2010. Brigus Gold Corp. was founded in 1936 and is headquartered in Halifax, Canada.

Advisors' Opinion:

• [By Christopher Barker]

  My recent visit to Brigus Gold's Black Fox mining complex in Ontario left me so utterly confident in the company's gathering growth momentum that I doubled my personal holding and encouraged my readers to dig into this remarkable turnaround story. A rocky path to production for predecessor Apollo Gold may have damaged the mine's reputation among investors, but under Brigus Gold this operation is rapidly hitting its stride. Brigus recently initiated a mill expansion that will bring capacity to 2,200 tons per day, and is mulling a subsequent expansion to 3,500 tons per day to coincide with anticipated production from some remarkable new gold discoveries within the Black Fox complex.

  Brigus released a new round of assays from exploration drilling at the exciting 147 Zone, including a breathtaking bonanza intercept of 4,165 grams per ton (133.9 ounces per ton!) over 1 meter; while nearby holes confirmed significant continuity of high-grade gold mineralization at depth (including one 50-meter interval grading 3.96 grams per ton). Click here to see what 4,165 grams per ton of gold looks like in a drill core. The 147 Zone continues to reveal outstanding development potential, facilitated by pre-existing underground infrastructure from historical underground mining nearby, and the deposit remains open to further expansion in all directions.

Top 10 Canadian Stocks To Buy For 2014: Airgas Inc.(ARG)

Airgas, Inc., through its subsidiaries, distributes industrial, medical, and specialty gases, as well as hardgoods in the United States. The company offers various gases, including nitrogen, oxygen, argon, helium, and hydrogen; welding and fuel gases, such as acetylene, propylene, and propane; and carbon dioxide, nitrous oxide, ultra high purity grades, special application blends, and process chemicals. Its hardgoods products comprise welding consumables and equipment, safety products, and construction supplies, as well as maintenance, repair, and operating supplies. The company also engages in the rental of gas cylinders, cryogenic liquid containers, bulk storage tanks, tube trailers, and welding and welding related equipment. In addition, the company manufactures and distributes liquid carbon dioxide, dry ice, nitrous oxide, ammonia, refrigerant gases, and atmospheric merchant gases. It serves repair and maintenance, industrial manufacturing, energy and infrastructure co nstruction, medical, petrochemical, food and beverage, retail and wholesale, analytical, utilities, and transportation industries. The company operates an integrated network of approximately 1100 locations, including branches, retail stores, packaged gas fill plants, specialty gas labs, production facilities, and distribution centers. Additionally, it provides retail solutions to retail customers, such as florists, grocers, restaurants and bars, tire and automotive service centers, and others. The company markets its products through multiple sales channels, including branch-based sales representatives, retail stores, strategic customer account programs, telesales, catalogs, e-business, and independent distributors. Airgas, Inc. was founded in 1982 and is based in Radnor, Pennsylvania.

Advisors' Opinion:

• [By Tom Bishop]

  Airgas Inc. (NYSE:ARG) was also the subject of a takeover bid, this one a little unwelcome. The company received a bid from Air Products (NYSE:APD) at $60 per share, a 38% premium from where the stock had been trading.
  
  Airgas rejected the offer claiming that the offer "very significantly undervalues Airgas and its future prospects and is not in the best interests of Airgas stockholders." Airgas finished up 39% in February 2010, and is currently trading at $65 per share as the market is anticipating a possible higher bid.

Top 10 Canadian Stocks To Buy For 2014: UniSource Energy Corporation(UNS)

UniSource Energy Corporation engages in the electric generation and energy delivery businesses. The company?s TEP segment generates, transmits, and distributes electricity to approximately 403,000 retail electric customers, including residential, commercial, industrial, and public sector customers in southeastern Arizona. It also sells electricity to other utilities and power marketing entities. As of December 31, 2010, this segment owned or leased 2,245 MW of net generating capacity, as well as owned or participated in electric transmission and distribution system consisting of 512 circuit-miles of 500-kV lines; 1,087 circuit-miles of 345-kV lines; 379 circuit-miles of 138-kV lines; 478 circuit-miles of 46-kV lines; and 2,621 circuit-miles of lower voltage primary lines. TEP segment generates electricity from coal, gas, oil, and solar sources. The company?s UNS Gas segment distributes gas to approximately 146,500 retail customers in Mohave, Yavapai, Coconino, and Navajo c ounties in northern Arizona, as well as Santa Cruz County in southeastern Arizona. As of December 31, 2010, this segment?s transmission and distribution system consisted of approximately 30 miles of steel transmission mains, 4,211 miles of steel and plastic distribution piping, and 136,439 customer service lines. The company?s UNS Electric segment transmits and distributes electricity to approximately 91,000 retail customers consisting of residential, commercial, and industrial customers in Mohave and Santa Cruz counties. As of December 31, 2010, UNS Electric?s transmission and distribution system consisted of approximately 56 circuit-miles of 115-kV transmission lines, 271 circuit-miles of 69-kV transmission lines, and 3,599 circuit-miles of underground and overhead distribution lines. This segment also owns the 65 MW Valencia plant, as well as 39 substations having an installed capacity of 1,788,050 kilovolt amperes. The company was founded in 1902 and is based in Tucson, Arizona.

Advisors' Opinion:

• [By Dirk_Van_Dijk]

  Uni-Select Inc. (UNS-T28.15-0.39-1.37%) will announce its fourth-quarter results for the period ended Dec. 31, 2011, on Thursday. Its stock gained nearly 2 per cent and moved to within a $1 of a year high $29.47 Wednesday.

  ?

Top 10 Canadian Stocks To Buy For 2014: Mistras Group Inc (MG)

Mistras Group, Inc. provides technology-enabled asset protection solutions to evaluate the structural integrity and reliability of critical energy, industrial, and public infrastructure worldwide. It provides traditional non-destructive testing (NDT) services; advanced NDT services; and mechanical integrity services. The company also offers software solutions, including Plant Condition Monitoring Software and Systems, an enterprise software that allows its customers for the warehousing and analysis of data. In addition, it provides Advanced Data Analysis Pattern Recognition and Neural Networks software, which enables acoustic emission (AE) experts to develop automated remote monitoring systems; AE Software Platform, a windows based real time application software; Loose Parts Monitoring Software program for monitoring, detecting, and evaluating metallic loose parts in nuclear reactor coolant systems; and Automated UT and Imaging Analysis Software for analyzing ultrasonic in spection data, and visualizing and identifying the location and size of flaws. Further, the company�s technology packages include TANKPAC for tank inspections; POWERPAC for monitoring discharges in critical power grid transformers; and Acoustic Combustion Turbine Monitoring System, an on-line system to detect stator blade cracks in gas turbines. Additionally, it offers digital radiographic systems to solve specific industrial problems; AE sensors, instruments, and turn-key systems, as well as leak monitoring and detection systems; ultrasonic equipment; vibration sensing products; and on-line monitoring services. Mistras Group, Inc. was founded in 1978 and is headquartered in Princeton Junction, New Jersey.

Top 10 Canadian Stocks To Buy For 2014: Great Basin Gold Ltd.(GBG)

Great Basin Gold Ltd. engages in the acquisition, exploration, and development of precious metal deposits. It explores for gold, silver, and aggregate. The company has two material projects, including the Hollister gold project consisting of a total of 950 unpatented, federal mining claims, covering approximately 69 square kilometers located in Ivanhoe Mining District, Elko County, Nevada; and the Burnstone gold mine comprising mineral rights covering approximately 35,000 hectares located in the Witwatersrand Basin goldfields in South Africa. It also holds interests in early stage mineral prospects, such as the Tsetsera Property in Mozambique; and properties in Tanzania and the island of Kurils in eastern Russia. The company was founded in 1986 and is headquartered in Sandton, South Africa.

Advisors' Opinion:

• [By Hutchinson]

  Great Basin Gold, Ltd. Common (AMEX:GBG): This equity had 13,465,632 shares sold short as of Aug 31st, as compared to 13,107,877 on Aug 15th, which represents a change of 357,755 shares, or 2.7%. Days to cover for this company is 5 and average daily trading volume is 2,917,536. About the equity: Great Basin Gold Limited explores and develops gold properties. The Company prospects for gold in the Witwatersrand Basin in South Africa and the Carlin Trend in Nevada.

Top 10 Canadian Stocks To Buy For 2014: Research in Motion Limited(RIMM)

Research In Motion Limited (RIM) designs, manufactures, and markets wireless solutions for the worldwide mobile communications market. The company, through the development of integrated hardware, software, and services, provides platforms and solutions for seamless access to time-sensitive information, including email, phone, short messaging service, and Internet and Intranet-based applications and browsing. Its products and services principally comprise the BlackBerry wireless platform, the RIM Wireless Handheld product line, software development tools, and other software and hardware. The company?s BlackBerry smartphones use wireless, push-based technology that delivers data to mobile users? business and consumer applications. Its BlackBerry smartphone portfolio includes BlackBerry Bold series, the BlackBerry Torch, BlackBerry Curve series, the BlackBerry Style, BlackBerry Storm series, the BlackBerry Tour, BlackBerry Pearl series, and the BlackBerry PlayBook tablet. T he company?s BlackBerry enterprise solutions comprise BlackBerry enterprise server, BlackBerry enterprise server express, BlackBerry mobile voice system, and hosted BlackBerry services. Its technology also enables third party developers and manufacturers to enhance their products and services through software development kits, wireless connectivity to data, and third-party support programs. In addition, the company offers BlackBerry technical support services, non-warranty repairs, and nonrecurring engineering services. Further, it provides BlackBerry App World that offers BlackBerry smartphone users an electronic catalogue that aids in the discovery and download/purchase of applications directly from their BlackBerry smartphone. The company markets and sells its BlackBerry wireless solutions primarily through global wireless communications carriers, and third party distribution channels. Research In Motion Limited was founded in 1984 and is headquartered in Waterloo, Canad a.

Advisors' Opinion:

• [By GuruFocus] Research-In-Motion is a high-profile case as renowned investor Prem Watsa bought into the company and sits on the company�� board. The stock was traded at above $140 in 2008. It has since lost more than 95%, traded at single digits and still sinking.
  
  Again let�� take a look at its gross margin:
  
  
  
  While BlackBerry was a must-have in the corporate world, the profit margin of Research-In-Motion has started to decline. This was well before Apple (AAPL) released its first iPhone. Again as pointed by Adib, value investors did not buy into RIMM while it was traded at $140 because the P/E ratio then was 45. Value investors bought into RIMM while it was traded at $30-40 because the P/E ratio was at 10. This was in 2009 and the decline in profit margin had been happening for three years.
• [By Geoff Gannon] The least loved of these is ��of course ��RIMM. Einhorn already has a paper loss in that stock. His average cost was $18.88 a share. Today�� price is $15.05. That�� a 20% loss. And Einhorn only started buying Research In Motion in the last three months of 2011.
  
  But Research In Motion is a pretty small position ��0.81% of Einhorn�� total portfolio ��compared to one of his other new buys: Dell.
  
  Einhorn already owns $255 million of Dell shares. He paid $15.36 a share. The stock is now at $18.08 a share. That�� an 18% gain. And Dell will mean a lot more to Einhorn�� performance than Research In Motion. Dell is a 3.9% position for Einhorn. That�� almost five times the size of his investment in Research In Motion. So ��for now at least ��Einhorn�� paper gain on Dell will more than make up for his paper loss on RIMM.
  
  Finally, there�� Yahoo.
  
  This is a quasi-new buy for Einhorn. He actually bought a 8.5 million shares of Yahoo in the first quarter of 2011 only to sell them for a 2% loss the next quarter. Einhorn was out of Yahoo completely for the third quarter of 2011. And now he�� back in with about 3 million shares bought in the fourth quarter of 2011. Einhorn�� average price is a wee bit lower this time. His original purchase price ��back in first quarter 2011 ��was $16.64 a share. He got his Yahoo shares about 6% cheaper this time around. Einhorn paid $15.66 a share for his 3 million shares of Yahoo. The stock is down a smidge from there. Around $15.25 a share.
  
  There have been reports of a breakdown in Yahoo�� buyout talks. But that�� par for the course in a situation like this where a company is shopping itself around. There will be lots of people leaking stories for lots of different reasons. Don�� believe everything you read about Yahoo. And certainly don�� try to trade on everything you read about Yahoo.
  
  Why is Einhorn buying Yahoo?
  
  Probably on a sum of the parts basis. As everybody knows, Yahoo has some ver! y valuable Asian assets. Unfortunately, they also have a history of mismanaging their U.S. business and losing the trust of their shareholders.
  
  Einhorn owns just 0.24% of Yahoo. Much less than the more than 5.6% owned by Daniel Loeb. Not surprisingly, Loeb is not a fan of Yahoo�� board. Loeb had this to say to Yahoo:
  
  ���Recent press reports (indicate) that the Board�� current strategic direction is to emphasize the technology aspects of (Yahoo��) business at the expense of advertising and media, which accounts for the vast majority of (Yahoo��) revenues. (We) believe that this approach places (Yahoo��) core revenue generating capability at substantial risk, fails to recognize the tremendous growth opportunity in video, and directly results from a dearth of essential expertise in media and entertainment at the Board level.
  
  ��he reluctance of the Board to prioritize shareholder value to date ��evidenced by years of deferring and delaying comprehensive strategic initiatives and missing out on myriad accretive transactions and strategic opportunities ��will no longer be tolerated or endorsed by investors. Shareholders deserve earnest representation and oversight as (Yahoo) confronts the critical investment and capital allocation decisions it expects to face in the next few months.��br>
  Is Einhorn content to ride Daniel Loeb�� coattails at Yahoo? Who knows? But we do know t

Best Safest Stocks To Invest In Right Now

Shares of Life Technologies (NASDAQ: LIFE  ) jumped in January, when the company announced it was looking for a potential buyer, and it may now be close to a decision, with solid offers having come in both from Blackstone Group (NYSE: BX  ) and Thermo Fisher Scientific (NYSE: TMO  ) . What will this biotech decide, and how will it affect investors? In this video, Motley Fool health-care analyst David Williamson gives us a breakdown of the offers on the table, and how investors could be affected depending on the outcome.

While you can certainly make huge gains in biotech and pharmaceuticals, the best investing approach is to choose great companies and stick with them for the long term. The Motley Fool's free report "3 Stocks That Will Help You Retire Rich" names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of.�Click here now�to keep reading.

Best Safest Stocks To Invest In Right Now: Petroleo Brasileiro S.A.- Petrobras(PBR)

Petroleo Brasileiro S.A. primarily engages in oil and natural gas exploration and production, refining, trade, and transportation businesses. The company?s Exploration and Production segment involves in the exploration, production, development, and production of oil, liquefied natural gas (LNG), and natural gas in Brazil. This segment supplies its products to the refineries in Brazil, as well as sells surplus petroleum and byproducts in domestic and foreign markets. Its Supply segment engages in the refining, logistics, transportation, and trade of oil and oil products; export of ethanol; and extraction and processing of schist, as well as holds interests in companies of the petrochemical sector in Brazil. The Gas and Energy segment involves in the transportation and trade of natural gas produced in or imported into Brazil; transportation and trade of LNG; and generation and trade of electric power. In addition, the segment has interests in natural gas transportation and d istribution companies; and thermoelectric power stations in Brazil, as well engages in fertilizer business. The Distribution segment distributes oil products, ethanol, and compressed natural gas in Brazil. The International segment involves in the exploration and production of oil and gas, as well as in supplying, gas and energy, and distribution operations in the Americas, Africa, Europe, and Asia. Further, the company involves in biofuel production business. Petroleo Brasileiro was founded in 1953 and is based in Rio de Janeiro, Brazil.

Advisors' Opinion:

• [By Dave Friedman]

  Institutional investors bought 78,663,680 shares and sold 101,125,380 shares, for a net of -22,461,700 shares. This net represents 0.23% of common shares outstanding. The number of shares outstanding is 9,872,826,100. The shares recently traded at $27.61 and the company’s market capitalization is $170,178,700,000.00. About the company: Petroleo Brasileiro S.A. – Petrobras explores for and produces oil and natural gas. The Company refines, markets, and supplies oil products. Petrobras operates oil tankers, distribution pipelines, marine, river and lake terminals, thermal power plants, fertilizer plants, and petrochemical units. The Company operates in South America and elsewhere around the world.

Best Safest Stocks To Invest In Right Now: Goldman Sachs Group Inc.(The)

The Goldman Sachs Group, Inc., together with its subsidiaries, provides investment banking, securities, and investment management services to corporations, financial institutions, governments, and high-net-worth individuals worldwide. Its Investment Banking segment offers financial advisory, including advisory assignments with respect to mergers and acquisitions, divestitures, corporate defense, risk management, restructurings, and spin-offs; and underwriting securities, loans and other financial instruments, and derivative transactions. The company?s Institutional Client Services segment provides client execution activities, such as fixed income, currency, and commodities client execution related to making markets in interest rate products, credit products, mortgages, currencies, and commodities; and equities related to making markets in equity products, as well as commissions and fees from executing and clearing institutional client transactions on stock, options, and fu tures exchanges. This segment also engages in the securities services business providing financing, securities lending, and other prime brokerage services to institutional clients, including hedge funds, mutual funds, pension funds, and foundations. Its Investing and Lending segment invests in debt securities, loans, public and private equity securities, real estate, consolidated investment entities, and power generation facilities. This segment also involves in the origination of loans to provide financing to clients. The company?s Investment Management segment provides investment management services and investment products to institutional and individual clients. This segment also offers wealth advisory services, including portfolio management and financial counseling, and brokerage and other transaction services to high-net-worth individuals and families. In addition, it provides global investment research services. The company was founded in 1869 and is headquartered in New York, New York.

Top 5 Insurance Companies To Invest In 2014: Fluor Corporation(FLR)

Fluor Corporation, through its subsidiaries, provides engineering, procurement, construction, maintenance, and project management services worldwide. Its Oil & Gas segment offers design, engineering, procurement, construction, and project management services to upstream oil and gas production, downstream refining, chemicals, and petrochemicals industries. This segment also provides consulting services comprising feasibility studies, process assessment, and project finance structuring and studies. The company?s Industrial & Infrastructure segment offers design, engineering, procurement, and construction services to the transportation, wind power, mining and metals, life sciences, manufacturing, commercial and institutional, telecommunications, microelectronics, and healthcare sectors. Its Government segment provides engineering, construction, logistics support, contingency response, management, and operations services to the United States government focusing on the Departme nt of Energy, the Department of Homeland Security, and the Department of Defense. The company?s Global Services segment offers operations and maintenance, small capital project engineering and execution, site equipment and tool services, industrial fleet services, plant turnaround services, temporary staffing services, and supply chain solutions. Its Power segment provides engineering, procurement, construction, program management, start-up and commissioning, and operations and maintenance services to the gas fueled, solid fueled, plant betterment, renewables, nuclear, and power services markets. The company also offers unionized management and construction services in the United States and Canada. Fluor Corporation was founded in 1912 and is headquartered in Irving, Texas.

Advisors' Opinion:

• [By CRWE]

  Fluor Corporation�� (NYSE:FLR) Chairman and Chief Executive Officer, David Seaton, and Chief Financial Officer, Biggs Porter, will give a presentation to investors at the Credit Suisse 2012 Engineering & Construction Conference in New York on Thursday, June 7 at 9:00 a.m. Eastern Daylight Time.

Best Safest Stocks To Invest In Right Now: Under Armour Inc.(UA)

Under Armour, Inc. develops, markets, and distributes performance apparel, footwear, and accessories for men, women, and youth primarily in the United States, Canada, and internationally. It offers products made from moisture-wicking synthetic fabrics designed to regulate body temperature and enhance performance regardless of weather conditions. The company provides its products in three fit types: compression (tight fitting), fitted (athletic cut), and loose (relaxed) extending across the sporting goods, outdoor, and active lifestyle markets. Its footwear offerings comprise football, baseball, lacrosse, softball, and soccer cleats; slides; performance training footwear; and running footwear. The company also provides baseball batting, football, golf, and running gloves, as well as licenses bags, socks, headwear, custom-molded mouth guards, and eyewear that are designed to be used and worn before, during, and after competition. Under Armour sells its products through retai l stores, as well as directly to consumers through its own retail outlets and specialty stores, Website, and catalogs. The company was founded in 1996 and is headquartered in Baltimore, Maryland.

Advisors' Opinion:

• [By Glenn]  

  Current Price: $27.27 12-month target: $37

  I see potential in opportunities for new product adjacencies, and expanding distribution worldwide. Footwear growth will continue to increase. Revenues for these products have increased over 69% in 2009. Adding to this I still see growth in Under Armour’s apparel sales, which are up 8%. Under Armor had yet to even break into the international market, which offers a plethora of new opportunities for this growing brand. I believe sales will rise drastically in 2010 driven by international sales, new women’s clothing line, and expansion within their own footwear line.
• [By Victor Mora]

  Under Armour provides athletic apparel, footwear, and accessories to a growing health and wellness, athletic, and fitness enthusiast population around the world. The stock has been on a powerful move towards higher prices that has led to it trading at all-time highs. Earnings and revenue figures have increased over most of the last four quarters which has led to excited investors. Relative to its peers and sector, Under Armour has led in year-to-date performance by a wide margin. Look for Under Armour to OUTPERFORM.

SEC’s Structured Products Chief to Exit

The Securities and Exchange Commission announced Tuesday that Kenneth Lench, chief of the Enforcement Division’s Structured and New Products Unit, will leave the agency for the private sector at the end of July.

Lench, who’s been at the SEC for more than 23 years, has led the unit since its inception in January 2010. The unit conducts investigations into complex financial instruments including asset-backed and derivative securities, and has 45 staffers in eight SEC offices across the country.

“Ken’s determination to always seek the right answers and his devotion to protecting investors by working tirelessly with his staff and colleagues made everyone around him better,” said George Canellos, co-director of the SEC’s Division of Enforcement, in a statement. “The Enforcement Division is stronger today because of Ken’s unwavering leadership.”

During Lench’s tenure, the SEC says that the unit filed “significant enforcement actions” against financial services firms that violated federal securities laws during the financial crisis relating to the structuring, marketing, and sale of collateralized debt obligations (CDO) and residential mortgage-backed securities (RMBS).

The CDO and RMBS cases filed under Lench’s leadership include Goldman Sachs, JPMorgan (CDO case and RMBS case), Citigroup, Credit Suisse, Mizuho, Wells Fargo/Wachovia, Option One, Stifel, Nicolaus & Co., and RBC Capital Markets.  These cases provide for approximately $1.7 billion in financial recovery for harmed investors.

Lench joined the SEC’s Enforcement Division as a staff attorney in 1990. He was promoted to branch chief in 1995, assistant chief counsel in 2000, and assistant director in 2004. As an assistant director, Lench spearheaded the SEC’s major auction-rate securities settlements with a number of major broker-dealer firms that provided more than $60 billion in liquidity to tens of thousands of investors.

He also led significant investigations into matters involving financial and accounting fraud, Foreign Corrupt Practices Act violations, and hedge fund fraud cases.

Besides serving in the Enforcement Division, Lench was in the SEC’s Division of Corporation Finance from 1999 to 2000.

Lench, who was in private practice prior to his arrival at the SEC, received his B.A. from Brandeis University and his J.D. from Boston University School of Law.

---

Check out How the SEC Stacks the Deck on ThinkAdvisor.

How to analyse key financial statements of a company

In this article, we shall go through the key constituents of the financial statements - profit and loss account, balance sheet and cash flow statement.

Key financial statements

Profit & Loss account: The profit and loss account (P&L) shows a company's performance over a specific time frame, usually a financial year or a period of 12 months. In India, most companies follow an April to March financial year (for example - 1st April 2011 to 31st March 2012 will be one financial year). The P&L account is also known as the income statement. It presents information relating to a company's revenues, manufacturing costs, sales and general expenses, interest and depreciation charges, tax costs, other income, net profits, and dividends, amongst others.

A typical P&L statement is as hereunder:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sourced from Britannia Industries' FY11 annual report

The balance sheet: The balance sheet gives a snapshot of a company's financial strength. The statement shows what a company owns or controls (assets) and what it owes (liabilities plus equity). In accounting terminology, the balance sheet is broken into two parts - 'Sources of funds' and 'Application of funds'. 'Sources of funds' indicate the total value of financing that a company has done, while 'Application of funds' indicates the areas the company has utilised these funds.

As such, sources of funds = application of funds.

Put in other words, assets = liabilities + equity.

As you would be aware, every company has limited resources. What differentiates a good company from an average one is the way in which it utilises such resources.

A typical balance sheet statement is displayed below.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sourced from Britannia Industries' FY11 annual report

Total Assets	Rs m	Total Liabilities	Rs m
Net fixed assets	3,154	Current liabilities	5,969
Investments	5,450	Shareholders' funds	4,513
Current assets	6,254	Loan funds	4,314
		Deferred tax liability (net)	62
Total	14,858	Total	14,858

 

 

 

 

 

 

 

 

Cash flow statement:

Put in simple terms, a cash flow statement shows the amount of cash and cash equivalents that enter and leave a company. Just as the P&L statement, the cash flow statement shows cash transactions during a particular time frame.

A company can generate or lose cash through its core operations. Further, it can raise or payback cash through financing activities. In addition, it can use cash for investing in assets or receive cash through sales of assets or through dividends. Being the various aspects of any business, these above-mentioned activities cover most of the integral cash transactions of a company. As such, the cash flow statement allows investors to understand how a particular company's business is running, how it has raised capital and how the same is being utilised.

A cash flow statement is typically broken into three broader parts:

Cash (used in)/ generated from operations Net cash used in investing activities Net cash from financing activities An example of a cash flow statement is displayed below.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sourced from Britannia Industries' FY11 annual report

In the next article of this series, we shall start our detailed discussion on the P&L statement and its key constituents.

Equitymaster.com

Basic steps to follow before buying a stock

Investing Basics: Why you should prefer long term investment

Foreclosure Activity Tumbles in 1H - Analyst Blog

Indicating a rebound in the housing sector, the foreclosure market report – released by RealtyTrac – showed overall foreclosure activity in the first half of 2013 to be on a downward trend. As per this leading online marketplace of foreclosure properties, foreclosure filings plunged 23% year over year and 19% from the last 6 months, bringing the total number of properties receiving default, auction or repossession notices to 801,359.

For the first six months of 2013, 409,491 foreclosure starts – default notices issued and foreclosure auctions (depending on the state's foreclosure procedure) – were filed across the U.S. As per the report, foreclosure starts are expected to reach 800,000 by the end of this year, down from 1.1 million in 2012.

Meanwhile, an aggregate of 248,538 bank repossessions (REOs) occurred in the first six months of 2013. Given this pace, REOs are anticipated to reach 500,000 by the year-end, down from approximately 671,000 in 2012.

Nevertheless, foreclosure activity continues to remain a drag for many states. The top 5 states with the highest foreclosure rates in the first half of the year were Florida, Nevada, Illinois, Ohio and Georgia. Additionally, the procedure to complete the foreclosure of properties in the second quarter took an average of 526 days, up from 477 days in the previous quarter.

The drop in foreclosure activity is a result of the switching of mortgage servicers and the government to other options to prevent foreclosures. However, foreclosure activity is expected to remain volatile, as processes that are being used in handling these differ from state to state.

Foreclosure activity is expected to increase in the judicial states as the latter have substantial backlogs to clear. This is evident from Jun 2013 data, as judicial foreclosure auctions were scheduled for 28,296 properties, up 34% from Jun 2012 and nearly 1% from May 2013.

This increase demonstrates that delayed foreclosure cases in judicial states ar! e now moving at a faster pace through foreclosure completion. Further, as the major servicers – JPMorgan Chase & Co. (JPM), Bank of America Corp (BAC), Citigroup Inc. (C), Ally Financial Inc. and Wells Fargo & Company (WFC) – adjust to the new rules set under the National Mortgage Settlement as well as several other state laws, foreclosure activity is bound to rise in the near term.

However, stabilizing housing prices are likely to aid homeowners in avoiding foreclosures. Further, the rate at which properties are entering the foreclosure procedure is expected to gradually slacken, thereby raising housing prices going forward.

The housing market will get an opportunity to regain a strong foothold if there are sufficient buyers for these properties. Moreover, with the gradual recovery of the U.S. economy, reduction of unemployment, improving consumer confidence and a rise in demand for homes, property prices are poised to rise further in the future.

H-P Renews Deal with Black & Veatch - Analyst Blog

Hewlett-Packard Co. (HPQ) recently won a multi-year service contract renewal from infrastructure developer Black & Veatch, a 98-year old engineering, consulting and construction company, which serves clients across the energy, water, telecommunications, federal and security markets. Financial terms of the contract were kept confidential.

The renewed contract spans 6 years, thus extending the existing 7-year relationship. Till now, H-P was responsible for managing Black & Veatch's information technology (IT) and applications environments. Henceforth, H-P will provide tools, technology and hardware support to help the company extend its geographical reach.

H-P's services will include data centers, networks, computing devices, workplace, security and applications. Black & Veatch will deploy H-P's services across its operating centers located in Argentina, India, Malaysia, Singapore, U.K. and the U.S.

Black & Veatch's reliance on H-P came as a result of years of services that helped the company to remain competitive. The company believes that H-P's services will be critical to its success in delivering solutions to meet the complex needs of its clients.

H-P's proven technological expertise has helped its Enterprise Services arm to win deals continuously. In the past few months, H-P won service deals from Chinese aviation technology provider, TravelSky Technology Ltd.; the Department of Vermont Health Access, the U.S. Department of Homeland Security Department, the U.S. Army Human Resources Command and State of Indiana's Department of Administration.

Despite frequent deal wins under the Enterprise Services Unit, the company's financial performance has not been quite encouraging. In the recently concluded second quarter of 2013, the segment registered a year-over-year revenue decline of 7.6%. The overall decline was due to a delay in closing large deals and higher impact of low-performing accounts.

Further indication of PC ! market slump in 2013, declining revenues and competition from Dell Inc. (DELL) are concerns. However, back-to-back product launches, continuous deal wins from different industrial sectors and growing exposure into the enterprise storage space are encouraging.

Currently, H-P has a Zacks Rank #2 (Buy). Other technology stocks that warrant consideration are CA Inc. (CA) and Rambus Inc. (RMBS), both carrying a Zacks Rank #1 (Strong Buy).

Your investment avenues during inflationary times

Through this article we intend guiding you valued investors' on how you should approach your investments during inflation times.

Primarily, while making fresh investments, or evaluating your existing investment portfolio in inflationary times you need to be cognisant about:

How interest rates would pave their path going forward; The real rate of return; and Post-tax yield on your investment In case if you are deriving a negative real rate of return on your investments , those investment avenues should be a strict "no-no". It is noteworthy that the real rate of return refers to the return which one obtains after accounting for inflation rate. To quickly calculate the same, one can use a simple formula which is:

Nominal Rate earned on the security- Inflation rate

Alternatively, you could also use the scientific formula to obtain the precise real rate of return; which is:

{((1 + return on the security)/(1 + inflation rate) -1) x 100}

Also one needs delve into the post-tax returns to consider investment avenues, to obtain meaningful returns after meeting your tax obligation for the returns earned.

So, where should you invest?

Well, there are investment avenues galore. In the backdrop of gloomy global economic environment, while many of you may display a trait of being risk averse, and might have penchant towards investing in fixed income instruments such as fixed deposits, bonds and debt mutual funds; we recommend you to adopt caution while investing in them, as they may not always aid you in achieving meaningful returns (post-tax) and kick the inflation bug.

If your age, income, risk profile and nearness facilitate you to invest in risky asset classes, you ought to gather courage and invest in the following investment avenues to kick the inflation bug over the long-term.

1. Equities:
The rollercoaster movement of the equity markets (in the last four years) have certainly brought shivers down the spine of many investors. But one needs to recognise that if one invest in equities for the long-term and refrains from trading, you could beat the inflation bug and clock appealing post-tax return. Over the last 10 year the Indian equity markets (BSE Sensex) has delivered a stunning CAGR of 19.3%, while inflation has averaged at about 6.0% 6.5%.

To invest in equity, you could either opt for direct equity investment (i.e. through stocks) or invest through equity mutual funds. Both have their own pros and cons. If you as an investor have profound insights about stocks and investing, with the requisite time and skill to analyse companies, then you can surely begin independent stock-picking. But, in case if you lack any one or all these pre-requisites, then you will be better-off by investing in stocks through equity mutual funds, since they offer several important advantages over direct stock-picking, which are:

Superior diversification Professional management Economies of scale Lower entry level Liquidity Innovative plans/ services for investors But while investing in mutual funds too, care should be taken to select winning mutual funds, and prefer the diversified equity funds over sector / thematic funds.

It is noteworthy that, over the last 10 years diversified equity funds on an average have given a return of 22.6% CAGR, whereas a few amongst them haven even outperformed this category average.

Thus, all those investors who have invested over the long-term have generated wealth in equities, but what is required in prudence, patience and perseverance to beat the inflation bug.

2. Gold:
The precious yellow metal gold too over the number of years has depicted its trait of being a hedge against inflation.  When uncertainty has afflicted global markets, investors have preferred to take refuge in gold because in times of inflation, gold prevents erosion in the value of the purchasing power. Amid the uncertainty surrounding the global economy, gold has moved northwards and safeguarded the overall investment portfolio. Over the last 10 years prices have moved up by whooping 415% in absolute terms (i.e. a CAGR of 17.8%) and gold has been a storehouse of value.

To invest in gold, you can either buy physical gold or invest in Gold Exchange Traded Funds (GETFs) or gold savings funds. But we recommend that you invest in the precious yellow metal the smart way and that is through GETFs for the host of advantages it has to offer. Alternatively, gold savings funds (which invest in GETFs) can also be considered if you want to invest regularly in gold, as such funds offer you the Systematic Investment Plan (SIP) mode of investing , which provide you with the benefit of rupee-cost averaging and compounding.

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Are You Kidding Me, FCX?

I am increasingly finding myself at a loss to describe what I feel after reading the proxy of Freeport-McMoran Copper & Gold (FCX).

I started getting interested in the stock in October 2011 when the stock price dropped precipitously to $28.85. The immediate reason was Indonesian labor strike at Grasberg. There were violent fights between unionized and un-unionized workers and the mine had to be closed at the expense of loss in production. Coupled with a jittery market the stock dropped to a level not seen since Jul 2010.

I have been seeing people trumpet FCX as a very good investment with upsides ranging from 40% to 65%. There has been numerous articles on seeking alpha for example (see here for a few).

FCX is a miner, smelter and refiner of copper, gold and molybdenum. Copper is the main source of revenue and represents nearly 80% of the revenue. The company produced 3.9b pounds of copper in 2010 and has proven reserves 120.5b pounds. FCX owns mining and smelting operations in North America, South America, Indonesia and Europe. Due to high prices of these commodities since 2004 the revenue of the company has increased quite a bit. But the company sells commodities and a drop in spot prices will have dire effects on the operating profit of the company.

Now that we have a brief idea of what FCX does, let us look at the valuation of FCX. The company has very small debt. The market cap at the moment is $35B and the EV is $38B. It has consistently generated good FCF and the figures are as follows.

6.22

	2003	2004	2005	2006	2007	2008	2009	2010	2011
FCF (in $B)	0.433	0.200	1.410	1.606	4.470	0.662	2.81	4.861	4.086
Income (in $B)	0.182	0.202	0.995	1.457	2.977	-11.067	2.749	4.336	4.560
RoIC	6.25	46.56	69.38	23.57	-73.44	22.97	28.63	25.03

We see that the figures were abysmal before 2004 and jumped suddenly in 2005. The FCF is not as stable as one will like it to be, but the improvement has been impressive. The RoIC has been quite elevated since 2004.

Insiders

Following are the main people on the board.
Richard C. Adkerson (age 65) has been Director, President and CEO since 1995.James R, Moffett (age 73) has been chairman of the board since 1995.
Compensation

Now I am ready to tell you why I have been disturbed after reading the proxy statement of this company. Let us look at the compensation practice of this company. To keep the figures in picture, the company has generated around $4.3B in net income in 2010 and $4.5B in 2011.

Let us first look at the benefits the management will get if they are fired or resign for "good reason". A "good reason" includes failure of acquirer to to provide the executive with substantially the same position. What this means is that if the company is acquired and the CEO does not get the CEO position then he can leave the job and receive the sum entitled to him.

Now let me put this in words. The company will pay the CEO $428m in case he is not offered the CEO job if the company is acquired (by Dec 31, 2010). He will get $300m if he leaves the job for some "good reason" or is fired. Think of this for a moment. The company was making around $200m in total income before 2004. Due to some changes in the program the lump sum has been reduced materially and the proxy also lists the figure for April 2011. If the whole board walks out in case of acquisition of the company by April 2011, the total payment would be $518m.
[ Enlarge Image ]

! If this i! s not egregious enough, let us look at the compensation of the board and the management.
[ Enlarge Image ]
[ Enlarge Image ]

In 2008 when the company made a loss of nearly $11B, the CEO received $77m in compensation. I ask you, what kind of performance based incentive is that?

It is quite obvious that FCX started performing better when the commodity prices took a sharp upturn in 2004. Before this period the company was average at best and achieved 6% RoIC with around $200m in net income. How much is the spot prices of Copper being affected by the CEO of the company ? Why does he get to keep so much of the shareholder's money when he has made no discernible impact on the profitability of the company. How does the board justify the compensation of the management as well as the supervisory board itself ? Since 2002 the share count has gone from 293m to 995m and the shareholders are poorer because of the stock based dilutions and additional stock offerings in 2007. The company has also bought back shares worth of $500m in 2008. From the company's new releases in 2007.


Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) announced that it has completed $5.76 billion in equity financings, through the sale of 47.15 million shares of common stock at $61.25 per share
These offerings generated net proceeds, after underwriting discount and expenses, totaling $5.6 billion, which will be used to repay indebtedness incurred in connection with the acquisition of Phelps Dodge Corporation.
Only 7 months later in Dec 2007 the company announced a share buyback of 20m shares and increased dividends. This is management at its best. The news! releases! do not give me enough information to make an informed judgement on this turn of fortune of FCX in 7 small months but I do not want to waste any more time on a management with such a skewed way of "managing the company for the shareholders". This is a company in which the management is clearly on the other side of the table from its shareholders.

I will be staying away from this company for a long time to come.

Hot Warren Buffett Companies For 2014

Last December, Markel (NYSE: MKL  ) shocked the market by announcing a $3.1 billion deal to acquire fellow insurer Alterra Capital.

(NYSE: MKL  ) The deal not only unsettled investors by employing a combination of cash and stock, but it was also significantly larger than the typically small acquisitions that President and CIO Tom Gayner pursues through his Markel Ventures subsidiary. The market immediately punished shares of Markel by driving them down as much as 10% that day.

Even so, I remained optimistic in spite of the drop after�speculating that the deal might also benefit Markel by giving Gayner more flexibility in the ways he invests both the company's insurance float and shareholder equity, which is a similar perk Warren Buffett enjoys as he invests for the much larger Berkshire Hathaway (NYSE: BRK-B  ) (NYSE: BRK-A  ) .

Hot Warren Buffett Companies For 2014: Minco Silver Corp Com Npv (MSV.TO)

Minco Silver Corporation, a mining company, engages in the acquisition, exploration, evaluation, and development of silver mineral properties and projects in the People�s Republic of China. Its flagship project is the Fuwan Silver property located in Guangdong province. The company was incorporated in 2004 and is headquartered in Vancouver, Canada.

Hot Warren Buffett Companies For 2014: AudioCodes Ltd. (AUDC)

AudioCodes Ltd. and its subsidiaries design, develop, and market products and services for voice, data, and video over Internet protocol (IP) networks to service providers and channels, original equipment manufacturers, network equipment providers, and systems integrators in the United States, Europe, Asia, Latin America, and Israel. Its networking products consist of media gateways, enterprise session border controllers, multi-service business routers, IP phones, mobile voice over IP (VoIP), media servers, and various products that are tailored for Microsoft unified communication environments. The company also offers VoIP network assessment for enterprises; and value added applications for unified communications, as well as supports its networking products with a range of professional services. Its technology products comprise signal processor chips that process and compress voice, data, and fax, as well as enable connectivity between traditional telephone networks and pa cket networks; VoIP communications boards; media processing boards for enhanced services and functionalities; and voice and data logging hardware integration board products. AudioCodes Ltd. was incorporated in 1992 and is headquartered in Lod, Israel.

Advisors' Opinion:

• [By Roberto Pedone]

  AudioCodes (AUDC) designs, develops and sells products and services for voice and data over packet networks. This stock closed up 8.4% to $4.75 in Tuesday's trading session.

  Tuesday's Range: $4.57-$4.86
  
  52-Week Range: $1.20-$5.04
  
  Tuesday's Volume: 493,000
  
  Three-Month Average Volume: 108,175

  From a technical perspective, AUDC gapped higher here right above its 50-day moving average of $4.43 with heavy upside volume. This move is quickly pushing shares of AUDC within range of triggering a major breakout trade. That trade will hit if AUDC manages to take out its 52-week high at $5.04 with high volume.

  Traders should now look for long-biased trades in AUDC as long as it's trending above its 50-day at $4.43 or above more support at $4.29 and then once it sustains a move or close above its 52-week high at $5.04 with volume that hits near or above 108,175 shares. If that breakout hits soon, then AUDC will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are its next major overhead resistance levels at $5.75 to $6.50, or even $7.

Top 10 Companies To Watch In Right Now: City Holding Company(CHCO)

City Holding Company operates as the bank holding company for City National Bank of West Virginia that provides various financial products and services. It offers demand deposits, such as interest and noninterest-bearing checking, regular savings, and other money market demand accounts. The company also provides various loans, such as commercial and industrial loans consisting of loans to corporate borrowers primarily in small and mid-size industrial and commercial companies and automobile dealers, as well as service, retail, and wholesale merchants; and commercial real estate loans comprising commercial mortgages. Its loan portfolio also includes residential mortgage loans, home equity loans and lines-of-credit, consumer loans, and previously securitized loans. In addition, the company offers trust and investment management services, as well as various insurance products and services. It operates through a network of 68 banking offices, including 57 offices in West Virgin ia, 8 offices in Kentucky, and 3 offices in Ohio, as well as through ATMs, check cards, interactive voice response systems, and Internet technology. The company was founded in 1982 and is headquartered in Charleston, West Virginia.

Hot Warren Buffett Companies For 2014: STAAR Surgical Company(STAA)

STAAR Surgical Company, together with its subsidiaries, engages in the design, development, manufacture, and sale of implantable lenses for the cataracts and refractive surgery. It offers intraocular lenses (IOL) that include silicone Toric IOL, which is used in cataract surgery to treat preexisting astigmatism; Preloaded Injector, a three-piece silicone or acrylic IOL preloaded into a single-use disposable injector; Aspheric IOLs that provide a clearer image than traditional spherical IOLs; and nanoFLEX IOL, a single-piece collamer aspheric IOL. The company also provides implantable collamer lenses (ICL) comprising VISIAN ICL and VISIAN Toric ICL to treat refractive disorders, such as myopia, hyperopia, and astigmatism. In addition, it sells surgical products and other related instruments, as well as manufactures AquaFlow device for the treatment of glaucoma. The company markets its products to health care providers, including surgical centers, hospitals, managed care pro viders, health maintenance organizations, group purchasing organizations, and government facilities primarily under the STAAR, Visian, Collamer, nanoFLEX, nanoPOINT, CentraFLOW, AquaPORT, Epiphany, and AquaFlow names. It distributes its products through directly employed representatives, independent sales representatives, and local distributors in the United States and internationally. The company was founded in 1982 and is headquartered in Monrovia, California.

5 Best Performing Stocks To Buy For 2014

LONDON -- The price of gold surged above $1,400 per ounce last week before falling back on Friday. Gold for immediate delivery ended the week 0.3% higher at $1,390 per ounce.

Of course, the only practical way for most private investors to invest in gold is through exchange-traded funds. The largest gold ETF, the $51 billion SPDR Gold Trust (NYSEMKT: GLD  ) , ended the week 0.3% lower at $133.92, while London-listed Gold Bullion Securities (LSE: GBS  ) rose 0.2% to end the week at $134.36. So far this year, shareholders of Gold Bullion Securities have seen the value of their holdings fall by 12%, while the value of SPDR Gold Trust shares has fallen by 18%.

Gold's big movers
Several miners made gains last week, outperforming the price of gold. Here are three of the biggest risers.

5 Best Performing Stocks To Buy For 2014: One Liberty Properties Inc.(OLP)

One Liberty Properties, Inc., a real estate investment trust (REIT), engages in the acquisition, ownership, and management of commercial real estate properties in the United States. The company�?s property portfolio includes retail furniture stores, as well as industrial, office, flex, health and fitness, and other properties. As of March 31, 2008, it owned 67 properties; holds a 50% tenancy in common interest in 1 property; and owns 4 properties through joint ventures. The company has elected to be treated as a REIT under the Internal Revenue Code. As a REIT, it would not be subject to federal income tax, if it distributes at least 90% of its taxable income to its shareholders. One Liberty Properties was founded in 1982 and is based in Great Neck, New York.

5 Best Performing Stocks To Buy For 2014: Ixia(XXIA)

Ixia supplies converged network and application performance testing solutions in the United States and internationally. It designs and validates a range of Internet protocol (IP) and third generation/long-term evolution networking equipment. The company?s solutions generate realistic traffic to stress routers, switches, and converged network appliances. It provides converged IP test systems and services for wireless and wired infrastructures and services. Ixia serves network equipment manufacturers, service providers, enterprises, and government agencies. The company was founded in 1997 and is headquartered in Calabasas, California.

5 Best Medical Stocks For 2014: Rockgate Capital Corp (RGT.TO)

Rockgate Capital Corp., an exploration stage company, engages in the acquisition, exploration, and development of mineral properties in West Africa. It primarily explores for uranium, silver, copper, and gold. The company owns a 100% interest in the Falea uranium-silver-copper property covering an area of approximately 225 square kilometers located in southwestern Mali. It also owns interests in various properties, including the Manalo/Mansaya, Koninko, and Balandougou mineral properties, as well as a 51% interest in the Ixtapan gold property covering approximately 4,190 hectares located in southwestern Mali; and the Telwa Gada property situated in Niger. Rockgate Capital Corp. is headquartered in Vancouver, Canada.

5 Best Performing Stocks To Buy For 2014: Semiconductor Manufacturing International Corporation(SMI)

Semiconductor Manufacturing International Corporation, an investment holding company, engages in the computer-aided design, manufacture, packaging, testing, and trade of integrated circuits. It offers a range of technologies from 0.35μm to 65nm with capabilities that include logic, mixed signal/RF CMOS, high voltage, embedded, flash, EEPROM, and CIS technology. The company also provides portfolio of semiconductor intellectual property (IP) blocks from 0.35um to 65nm to support the design needs of customers; ASIC design services; reference flows; mixed-signal/RF PDKs; and multi-project wafer services. In addition, it involves in the design and manufacture of semiconductor masks; and provides assembly and testing, wafer bumping, and wafer probing/testing services. Further, the company offers marketing related activities; operates convenience stores; and manufactures and trades in solar cell related semiconductor products. Its products are used primarily in mobile, network ing, and wireless local area network applications, as well as in consumer and communications products, including digital television, set-top box, mobile, portable media player, and personal digital assistant applications. The company serves integrated device manufacturers, fables semiconductor companies, and system companies principally in the United States, Europe, and the Asia Pacific. Semiconductor Manufacturing International Corporation was founded in 2000 and is headquartered in Shanghai, the People?s Republic of China.

5 Best Performing Stocks To Buy For 2014: Oxford Instruments(OXIG.L)

Oxford Instruments plc researches, develops, manufactures, and sells high technology tools and systems. It operates in three segments: Nanotechnology Tools, Industrial Products, and Service. The Nanotechnology Tools segment produces analysis tools for precise chemical and structural data using electron microscopes; equipment for experimental research in the areas of very low temperature and very high magnetic fields; and nanotechnology fabrication tools, which are used to manipulate materials at the atomic scale. The Industrial Products segment produces analytical equipment for industrial quality control and environmental monitoring; superconducting wire for MRI scanners markets; and equipment to analyze industrial and food products, primarily oils and fats, as well as magnetic resonance analytical tools for the petrochemical industry, which offers data used to enhance the efficiency of oil extraction. The Service segment provides magnet service, parts, and accessories to service and support the magnetic resonance imaging (MRI) industry; and supplies, services, and refurbishes vacuum pumps, helium compressors, and cold heads for the semiconductor, medical, and research sectors. The company offers its products to energy, environment, health, industry, nanotechnology, security, food and agriculture, information technology, research, rock core analysis, semiconductor electronics, and space markets. It operates in the United States, Europe, Asia, the United Kingdom, Japan, China, Germany, and internationally. Oxford Instruments plc was founded in 1959 and is headquartered in Abingdon, the United Kingdom.

Amazon Beats Google to the Fan-Fiction Punch

Amazon (NASDAQ: AMZN  ) introduced Kindle Worlds last week, teaming up with Time Warner (NYSE: TWX  ) to allow fans of Gossip Girl, Vampire Diaries, and Pretty Little Diaries to cash in on fan fiction by publishing their works through the leading online retailer's digital bookstore.

Google (NASDAQ: GOOG  ) has often been the haven of cottage industries in cyberspace, arming webmasters with the ability to seamlessly serve up contextual ads through AdSense and giving video makers revenue-sharing deals through Google's YouTube Partners program. However, Amazon's been the one taking the lead with aspiring writers, and now it's the first to cash in on licensing fan fiction.

In this video, longtime Fool contributor Rick Munarriz explains why a little fan fiction can go a long way for Amazon.

5 Best Safest Stocks To Own Right Now

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Dow Falls After Housing Data and Bernanke Disappoint

After being up for most of the day, blue-chip stocks have descended into negative territory after housing data and testimony from the Federal Reserve chairman disappointed analysts and investors. With roughly an hour remaining in the trading session, the Dow Jones Industrial Average (DJINDICES: ^DJI  ) is off by 39 points, or 0.25%.

Data released this morning showed that the nascent housing recovery is still on track, though it's not growing at the rate anticipated by economists. According to the National Association of Realtors, existing-home sales rose in April by 0.6% to the highest level since November 2009. While this equated to a 9.7% increase over the same month last year, economists surveyed by MarketWatch had nevertheless anticipated the number to come in marginally higher.

"The robust housing market recovery is occurring in spite of tight access to credit and limited inventory," said NAR chief economist Lawrence Yun. "Without these frictions, existing-home sales easily would be well above the [current] pace."

The nation's largest luxury-home builder, Toll Brothers (NYSE: TOL  ) , confirmed the generally positive trend in the housing market today with its fiscal second-quarter results -- click here to read the press release. While a comparison of the company's year-over-year earnings figures was rendered meaningless by a $13.2 million pre-tax gain related to the settlement of derivative litigation, its unit sales showed tangible improvement. Relative to the same three-month period last year, Toll's net signed contracts rose by 36%.

"Demand accelerated significantly this quarter," noted CEO Douglas Yearley. "Increased pricing power and stronger sales drove our agreements up 57% in dollars and 36% in units -- the highest for any quarter in seven years."

On a slightly less upbeat note -- at least so far as the stock market is concerned -- there's now reason to believe that the Federal Reserve may soon begin to reduce its massive monthly purchases in the bond market. Testifying before a congressional panel earlier today, Fed Chairman Ben Bernanke said that the central bank could begin winding down the $85 billion-a-month program at one of its "next few meetings" if it concludes that there's been "real and sustainable progress in the labor-market outlook." Click here for the official transcript of his testimony.

This testimony was seconded by the release of the minutes from the Fed's most recent monetary-policy meeting. The notes showed that a "number" of officials are ready to start tapering purchases as soon as the next meeting this June, while a "couple" said that the central bank might have to step up the program if conditions don't improve. A recap in The Wall Street Journal captured the Fed's predicament: "Fed officials are hesitant about their next step on monetary policy in part because they're especially uncertain about how the economy unfolds in the next few months, in the face of tighter fiscal policies."

Best High Tech Stocks To Buy For 2014

It was this news that sent stocks lower this afternoon after they were generally up for much of the day. Shares of Wal-Mart (NYSE: WMT  ) are indicative of the trend, down 0.6%% at the time of writing. The retail giant disappointed analysts last week with worse-than-expected quarterly earnings for the three months ended April 30. Its same-store sales were particularly disconcerting, having dropped on a year-over-year basis for the first time since the summer of 2011. Investors today were likely reminded of Wal-Mart's tribulations after its primary competitor, Target, reported a similar experience.

One of the few Dow stocks headed higher, alternatively, is Home Depot (NYSE: HD  ) . The impetus for the move appears to be twofold. First, it still appears to be riding high on yesterday's earnings release, which beat expectations on both the top and bottom lines. And second, while the housing data released this morning missed the consensus estimate, it nevertheless showed a continued improvement in the sector that matters most to Home Depot and its investors.

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Verizon to Launch Samsung Galaxy S4 Earlier Than Expected

Top domestic carrier Verizon (NYSE: VZ  ) Wireless has announced that it will launch Samsung's newest Galaxy S4 slightly earlier than expected. The flagship smartphone will be available on May 23, compared with the previously expected availability date of May 30. After a $50 mail-in rebate, the Galaxy S4 will be priced at $200 on contract.

The news comes after Sprint Nextel (NYSE: S  ) and T-Mobile (NYSE: TMUS  ) ran into inventory-related delays last month when launching the device on their respective networks. Verizon is the last of the four major wireless carriers to launch the Galaxy S4, completing Samsung's lineup of the biggest U.S. carriers.

The Galaxy S4 promises to be among the top Android smartphones of 2013 and may put competitive pressure on the rival HTC One.

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Hot High Tech Companies To Own In Right Now

Investors following the North American oil and gas industry should be aware that oil production volumes from the Eagle Ford shale play have blown past expectations this year.

According to the Texas Railroad Commission, crude oil production from the Eagle Ford region averaged more than half a million barrels per day for the first quarter of 2013. This is a whopping 34% increase from 2012 production levels and is also the highest since the south Texas play hit oil in 2008. Energy research firm Wood Mackenzie estimates that total Eagle Ford capital expenditure will hit $28 billion in 2013. It's pretty evident that the value extracted by major operators is exceeding expectations. However, this shouldn't come as a big surprise, either. In the last couple of years, exploration and production companies have been quietly raking up acreage in this shale play.

Hot High Tech Companies To Own In Right Now: Entropic Communications Inc.(ENTR)

Entropic Communications, Inc., a fabless semiconductor company, designs, develops, and markets systems solutions to enable connected home entertainment. Its products include integrated circuits and related software associated with home networking solutions based on the Multimedia over Coax Alliance standard; direct broadcast satellite (DBS) services; high-speed broadband access; and silicon tuners. The company?s products enable the delivery of various streams of high-definition television-quality video, standard-definition television-quality video, and other multimedia content, such as movies, music, games, and photos into and throughout the connected home. It serves telecommunications carriers, cable operators, and DBS service providers, as well as the providers of over-the-top services. Entropic Communications offers its products through its direct sales force, as well as through a network of sales representatives and distributors worldwide. The company was founded in 20 01 and is headquartered in San Diego, California.

Advisors' Opinion:

• [By Fabian]  

  The brokerage said its  checks suggest that the Entropic's ongoing business with equipment providers to DirecTV, Comcast, Cox, Time-Warner Cable continues to be strong.

  "We believe ENTR may exit 2010 with 90-95% market share and while Broadcom may capture 20-25% of the market in 2011, we expect ENTR to maintain its leading position due to its technology lead and field-proven silicon," the analysts at ThinkEquity wrote in a note to clients.

Hot High Tech Companies To Own In Right Now: C.H. Robinson Worldwide Inc.(CHRW)

C.H. Robinson Worldwide, Inc., a third-party logistics company, provides multimodal freight transportation services and logistics solutions to companies in various industries worldwide. It offers freight transportation services through its contractual relationships with various transportation companies, including motor carriers, railroads, air freight carriers, and ocean carriers. The company has contractual relationships with approximately 49,000 transportation companies. Its transportation and logistics services include truckload, less-than-truckload, intermodal, ocean, and air freight transportation, as well as transportation management, customs brokerage, and warehousing services. In addition, it engages in buying, selling, and marketing fresh produce to grocery retailers, restaurants, produce wholesalers, and foodservice distributors under the Fresh 1 and OurWorld Organics names, as well as under Tropicana, Welch?s, Mott?s, and Glory Foods names. Further, the company provides spend management and payment processing services through a platform that facilitates funds transfer, vendor payments, fuel purchasing, and online expense management primarily for motor carriers and truck stop chains. It operates through a network of 232 branch offices in North America, Europe, Asia, South America, Australia, and the Middle East. C.H. Robinson Worldwide, Inc. was founded in 1905 and is headquartered in Eden Prairie, Minnesota.

Hot Tech Stocks To Watch For 2014: Ocean Power Technologies Inc.(OPTT)

Ocean Power Technologies, Inc. engages in the development and commercialization of proprietary systems that generate electricity by harnessing the renewable energy of ocean waves primarily in North America, Europe, Asia, and Australia. The company offers utility PowerBuoy system to supply electricity to a local or regional electric power grid; and autonomous PowerBuoy system that is designed to generate power for use independent of the power grid in remote locations. Its autonomous PowerBuoy system is also used in various applications, including homeland security, off-shore oil and gas platforms, aquaculture, and ocean-based communication and data gathering, such as tsunami warnings. The company sells its products to public utilities, independent power producers, and other governmental entities and agencies, as well as public and private entities that use electricity in and near the ocean. Ocean Power Technologies, Inc. was incorporated in 1984 and is headquartered in Penn ington, New Jersey.

Hot High Tech Companies To Own In Right Now: Magellan Petroleum Corporation(MGN.AX)

Magellan Petroleum Corporation, together with its subsidiaries, engages in the exploration for, development, production, and sale of oil and gas reserves in Australia, the United States, Canada, and the United Kingdom. Its principal assets include 2 petroleum production leases covering the Mereenie oil and gas field, 1 petroleum production lease covering the Palm Valley gas field, and 1 retention license for the Dingo Field located in the Amadeus Basin in the Northern Territory of Australia; and 13 licenses in the United Kingdom. The company also has a 28.3% working interest in the East Poplar Unit and Northwest Poplar in Montana. Magellan Petroleum Corporation was founded in 1957 and is based in Portland, Maine.

Hot High Tech Companies To Own In Right Now: General Mills Inc (GIS)

General Mills, Inc. (General Mills), incorporated on June 20, 1928, is a manufacturer and marketer of branded consumer foods sold through retail stores. The Company is also a supplier of branded and unbranded food products to the foodservice and commercial baking industries. The Company manufactures its products in 15 countries and markets them in more than 100 countries. The Company's joint ventures manufacture and market products in more than 130 countries and republics worldwide. General Mills operates in three segments: U.S. Retail, International, and Bakeries and Foodservice. In addition, the Company sells ready-to-eat cereals through its Cereal Partners Worldwide (CPW) joint venture. In February 2012, General Mills acquired Food Should Taste Good, a natural snack foods company based in Needham Heights, Mass. During the fiscal year ended May 27, 2012, the Company acquired a 51% interest in Yoplait S.A.S. and a 50% interest in Yoplait Marques S.A.S. In August 2012, it acquired Yoki Alimentos SA.

General Mills�� ready-to-eat cereals consists of Cheerios, Wheaties, Lucky Charms, Total, Trix, Golden Grahams, Chex, Kix, Fiber One, Reese�� Puffs, Cocoa Puffs, Cookie Crisp, Cinnamon Toast Crunch, Clusters, Oatmeal Crisp and Basic 4. Its refrigerated yogurt include Yoplait, Trix, Delights, Go-GURT, Fiber One, YoPlus, Whips!, Mountain High, Liberte, YOP, Perle de Lait, Petits Filous and Panier. The Company�� refrigerated and frozen dough products consists of Pillsbury, the Pillsbury Doughboy character, Grands!, Golden Layers, Big Deluxe, Toaster Strudel, Toaster Scrambles, Simply, Savorings, Jus-Rol, Latina, Pasta Master, Wanchai Ferry, V.Pearl and La Saltena. The dry dinners and shelf stable and frozen vegetable products includes Betty Crocker, Hamburger Helper, Tuna Helper, Chicken Helper, Old El Paso, Green Giant, Potato Buds, Suddenly Salad, Bac*O��, Betty Crocker Complete Meals, Valley Selections, Simply Steam, Valley Fresh Steamers, Wanchai Ferry, Diablitos and Parampara. Its gr! ain, fruit, and savory snacks consists of Nature Valley, Fiber One, Betty Crocker, Fruit Roll-Ups, Fruit By The Foot, Gushers, Chex Mix, Gardetto��, Bugles, Food Should Taste Good and Larabar. The sessert and baking mixes includes Betty Crocker, SuperMoist, Warm Delights, Bisquick and Gold Medal. Ready-to-serve soup consists of Progresso. The Company�� ice cream and frozen desserts include Haagen-Dazs, Secret Sensations, Cream Crisp and Dolce. Its frozen pizza and pizza snacks includes Totino��, Jeno��, Pizza Rolls, Party Pizza, Pillsbury Pizza Pops and Pillsbury Pizza Minis. General Mills�� organic products include Cascadian Farm and Muir Glen.

The Company�� products are marketed under trademarks and service marks that are owned by or licensed to the Company. Some of the brand names include Dora the Explorer, Disney Cars, and Disney Princesses for yogurt, and Dora the Explorer for cereal; Reese's Puffs for cereal; Hershey's chocolate for a variety of products; Weight Watchers as an endorsement for soup and frozen vegetable products; Macaroni Grill for dry and frozen dinners; Sunkist for baking products and fruit snacks; Cinnabon for refrigerated dough, frozen pastries, and baking products; Bailey's for super-premium ice cream, and a range of characters and brands for fruit snacks, including Scooby Doo, Batman, Tom and Jerry, Ocean Spray, Thomas the Tank Engine, My Little Pony, Transformers, and various Warner Bros. and Nickelodeon characters. Its primary customers include grocery stores, mass merchandisers, membership stores, natural food chains, drug, dollar and discount chains, commercial and noncommercial foodservice distributors and operators, restaurants, and convenience stores.

U.S. Retail segment

The Company�� U.S. Retail segment reflects business with a range of grocery stores, mass merchandisers, membership stores, natural food chains, and drug, dollar and discount chains operating throughout the United States. Its product categories in thi! s busines! s segment include ready-to-eat cereals, refrigerated yogurt, ready-to-serve soup, dry dinners, shelf stable and frozen vegetables, refrigerated and frozen dough products, dessert and baking mixes, frozen pizza and pizza snacks, grain, fruit and savory snacks, and a range of organic products, including granola bars, cereal and soup.

International segment

The Company�� International segment consists of retail and foodservice businesses outside of the United States. In Canada, its product categories include ready-to-eat cereals, shelf stable and frozen vegetables, dry dinners, refrigerated and frozen dough products, dessert and baking mixes, frozen pizza snacks, refrigerated yogurt, and grain and fruit snacks. In markets outside North America, its product categories include super-premium ice cream and frozen desserts, refrigerated yogurt, grain snacks, shelf stable and frozen vegetables, refrigerated and frozen dough products, and dry dinners. Its International segment also includes products manufactured in the United States for export, mainly to Caribbean and Latin American markets, as well as products it manufactures for sale to its international joint ventures.

Bakeries and Foodservice segment

In Company�� Bakeries and Foodservice segment its product categories include cereals, snacks, refrigerated yogurt, unbaked and fully baked frozen dough products, baking mixes, and flour. It sells to distributors and operators in many customer channels, including foodservice, convenience stores, vending and supermarket bakeries.

Hot High Tech Companies To Own In Right Now: Family Dollar Stores Inc.(FDO)

Family Dollar Stores, Inc. operates a chain of self-service retail discount stores primarily for low and middle income consumers in the United States. The company offers consumables, including household chemicals, paper products, candy and snack products, health and beauty aids, hardware and automotive supplies, and pet food products and supplies; and home products, which comprise domestics, housewares, giftware products, and home decor products. It also provides apparel products and accessories consisting of men?s and women?s clothing products, boys? and girls? clothing products, infants? clothing products, shoes, and fashion accessories; and seasonal products and electronics, such as toys, stationery and school supplies, seasonal goods, and personal electronics. As of August 11, 2011, the company operated approximately 7,000 stores in rural and urban settings across 44 states. Family Dollar Stores, Inc. was founded in 1959 and is headquartered in Matthews, North Carolina .

Advisors' Opinion:

• [By Sy_Harding]

  My second retail value stock is clearly a value stock: Family Dollar Stores (FDO -0.20%, news). Operating in the intensely competitive discount retail segment at a time when its customer base was feeling the brunt of the slow recovery, Family Dollar managed to grow same-store sales 4.8% in fiscal 2011, with a 5% to 7% increase projected for fiscal 2012 and to improve its market position by shifting its merchandise mix and moving into urban neighborhoods. The stock trades at about 18 times trailing 12-month earnings per share and just about 13 times forward projected earnings. Wall Street analysts are looking for 23.6% earnings growth in the quarter that ends in February 2012.