Are Bonds Calling a Top in Stocks?

One of the many tenets on Wall Street is that debt investors are often a step or two ahead of stock investors when it comes to identifying slowing economic growth, writes Chris Ciovacco on SafeHaven.com.

Investors Migrating to Riskier Debt
From a common sense perspective, it makes some sense. Debt investors tend to be more risk averse, and thus may dot a few more due diligence i's and cross a few more analytical t's.

From Bloomberg: “Investors are pumping money into junk bonds globally at the fastest pace ever while tempering their enthusiasm for higher-rated debt, demonstrating a preference for yield over stability. Investors who abandoned junk bonds at a record pace in June are now casting aside concern that the securities will lose their allure as the Federal Reserve slows its record stimulus because of the extra yield the securities offer.”

Sentences about capital flows that contain extreme expressions, such as "at the fastest pace ever," tend to raise red flags about sentiment. Sentiment, at extremes, can be a valuable contrary indicator.

Similarities To 2007-2008?
One way to evaluate any situation in the markets is to compare the present day to previous bearish market turns and look for similarities. The Junk Bond Spyder ETF (JNK) can be used as an excellent proxy for the high-yield debt markets. Since JNK did not start trading until 2008, to go back to the stock market's October 2007 peak, the graph below uses a mutual fund (FIHBX) as a proxy for JNK. The top of the chart shows the S&P 500 for comparison purposes. The ratio of junk debt to conservative debt is below the S&P 500. When the bond ratio rises, demand for junk bonds is greater than demand for conservative Treasuries. Were the debt markets a step ahead of stocks in 2007? Yes, as you can see below, bond investors started to migrate away from junk bonds toward more conservative Treasuries (TLT) well before stocks peaked (falling ratio). The credit markets correctly forecasted the coming risks in June 2007, or four months before a major bear market began in October.

2013: Credit Markets Look Better
How does the ratio of junk bonds vs. Treasuries look today? Answer: much better than it did in October 2007 when the stock market peaked.

Bonds Not Forecasting a Recession
The chart above tells us that the credit markets see a much lower probability of recession today than they did in mid-to-late 2007. When a recession hits, the odds of riskier bonds going into default increase. Under those conditions, investors migrate away from junk debt, rather than toward it as they are doing today. The JNK:TLT ratio is one of many risk-on vs. risk-off ratios used by our market model to monitor the health of the economy and financial markets.

Are Credit Markets Preparing for a Better Economy?
Higher interest rates are to be expected as the economy stabilizes and growth picks up. Bloomberg noted another possible hint coming from the recent outperformance of riskier debt relative to more conservative offerings:

"High yield is far less vulnerable to a rise in interest rates than investment grade," Gregory Kamford, a credit strategist at RBS Securities Inc. in Stamford, Connecticut, said in a telephone interview. The securities will "materially outperform investment grade over the balance of 2013," he said.

Bonds Helped in 2011
Are the credit markets always helpful in forecasting impending stock market weakness? No, but the track record is strong enough to be very helpful over longer periods of time. Similar to 2007, the JNK:TLT ratio peaked in 2011 well before the European debt crisis assisted with a sharp decline in equities in July/August.

Investment Implications
The Fed's desire to taper their bond purchases is concerning and something that we will monitor closely. However, the known desire to taper has not yet shown up in the credit markets in the form of risk aversion as it did in 2007 and 2011 prior to sharp declines in stocks. As long as that is the case, we will continue to favor stocks (SPY) over bonds (AGG). We will also hold our positions in leading sectors such as financials (XLF), technology (QQQ), and small caps (IWM). If the messages from the markets change, we are happy to migrate toward a more conservative stance.

By Chris Ciovacco, Contributor, SafeHaven.com

This Bank Is a Case Study in Doing Right By the Customer

Free checking? A 24-hour grace period on overdraft fees? Products actually designed to help the consumer better manage their finances? It seems like this sort of customer-centric banking would only exist in a dream world, but at Huntington Bancshares (NASDAQ: HBAN  ) , it's reality.

Huntington, and other regional banks like KeyCorp (NYSE: KEY  ) and Regions Financial (NYSE: RF  ) , are staying out of the headlines, bringing strong products to the market, and as a result, winning new business. In the video below, Motley Fool contributor Jay Jenkins highlights Huntington as an industry leader in customer-focused banking.

Many investors are terrified about investing in big banking stocks after the crash, but the sector has one notable stand-out. In a sea of mismanaged and dangerous peers, it rises above as "The Only Big Bank Built to Last." You can uncover the top pick that Warren Buffett loves in The Motley Fool's new report. It's free, so click here to access it now.

Sony Gears Up for Next Iteration of Optical Data Storage

Sony (NYSE: SNE  ) is partnering with Panasonic to create the next installment of optical drive storage for both businesses and the entertainment industry, the company announced today. The new discs will store at least 300GB of data, a tripling of the maximum storage now offered in the companies' discs.

The new disc technology would increase the amount of data storage compared to current offerings, while allowing inter-generational compatibility between different formats. Sony said in it press release that, "In recent years, there has been an increasing need for archive capabilities, not only from video production industries, such as motion pictures and broadcasting, but also from cloud data centers that handle increasingly large volumes of data following the evolution in network services." 

In September of last year, Sony introduced a commercial optical drive archival system that incorporated discs that each had a maximum capacity of 25GB, and just this month Panasonic created a similar disc system that used 100GB per-disc storage. The new optical discs Sony and Panasonic are working on would increase per-disc storage by at least three times the amount of current disc technology offered by both companies.

Sony said the new discs will be available by the end of 2015.

link

Why Dendreon Had Its Battleship Sunk

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Dendreon (NASDAQ: DNDN  )  -- developer of the Food and Drug Administration-approved immunotherapy treatment Provenge to treat castration-resistant prostate cancer -- sank like a stone, losing as much as 17% after reporting disappointing first-quarter results.

So what: For the quarter, revenue for Provenge actually fell 18% year-over-year to $67.6 million despite the company's aggressive advertising campaign, missing the Street's estimates of $80 million in sales. Net loss clocked in at $0.48 per share, which was right in line with estimates. Dendreon's CEO, John Johnson, blamed the revenue shortfall on his company's difficulty in gaining insurance approval for the pricey treatment, and increased competition, which included Medivation's Xtandi getting a recommendation for approval to treat advanced prostate cancer from the Committee for Medicinal Products for Human Use in Europe last month. Dendreon's remaining cash balance fell to $337.3 million.

Now what: Dendreon really needs to attack this from two fronts at once. Without question, if Dendreon has any hope of righting this ship, it'll need to get Provenge approved in Europe. Approval there would likely double sales within the first two years. Second, it needs to slow the bleeding in the U.S. The company's restructuring should demonstrate noticeable expense savings in the second half of this year, but it's going to need to work with insurers to comfort physicians who are afraid of not being reimbursed after prescribing Provenge. It was an ugly quarter indeed, but I haven't given up on Dendreon just yet.

Craving more input? Start by adding Dendreon to your free and personalized watchlist so you can keep up on the latest news with the company.

Resurgence, or dead cat bounce?
Shares of Dendreon have surged in recent months, with the stock gaining new life from the depths of late 2012. Has the company really solved its underlying problems, or are investors setting themselves up for more disappointment? Our new premium research report on Dendreon answers these questions, and many more, while also outlining just how Dendreon intends to regain its former glory. Claim your copy by clicking here now.

The Highest-Grossing Movies of 2013

Since motion pictures were created more than a century ago, people around the world have remained captivated by the technology's ability to entertain, inform, and allow us to exercise unparalleled creativity. To be sure, with around five months still remaining in 2013, audiences have spent more than $6.4 billion at the box office so far this year.

Let's grab a ridiculously expensive bucket of popcorn and take a look at the biggest blockbusters -- and the company's behind them -- so far in 2013.

Rank Title Company / Distributor

Worldwide Gross
(Millions)

Domestic Gross
(Millions)  Production Budget
(Millions) 

1	Iron Man 3	Disney (NYSE: DIS  ) / Buena Vista	$1,211.7	$407.1	$200
2	Fast & Furious 6	Comcast (NASDAQ: CMCSA  ) / Universal Studios	$712.7	$237.3	$160
3	Man of Steel	Time Warner (NYSE: TWX  ) / Warner Brothers	$635.8	$285.8	$225
4	Despicable Me 2	Comcast / Universal Studios	$595.6	$287.2	$76
5	The Croods	DreamWorks (NASDAQ: DWA  ) / 20th Century Fox	$582.4	$186.2	$135
6	Monsters University	Disney / Buena Vista	$535.7	$251.8	$200*
7	Oz the Great and Powerful	Disney / Buena Vista	$491.9	$234.9	$215
8	World War Z	Viacom (NASDAQ: VIAB  ) / Paramount	$458.7	$189.2	$190
9	Star Trek Into Darkness	Viacom / Paramount	$448.8	$225.3	$190
10	G.I. Joe: Retaliation	Viacom / Paramount	$371.9	$122.5	$130

Source: boxofficemojo.com, numbers as of July 25, 2013.
*Estimated (Disney has not disclosed the budget for Monsters University).

Perhaps unsurprisingly, Disney's Iron Man 3 easily tops the list as the only company to surpass the $1 billion mark, exceeding the second-place $713 million take of Fast & Furious 6 by a whopping 70%.

Curiously enough, Iron Man 3 is also the only movie so far this year to crack the top 10 in the list of highest worldwide grossing films of all time, coming in at No. 5 behind the likes of Avatar, Titanic, Marvel's The Avengers, and Harry Potter and the Deathly Hallows Part 2.

That said, am I the only one surprised at the global success of Fast & Furious 6? Perhaps it's just that Comcast's racing flick currently stands at only fifth on the domestic ticket sales front, but apparently international audiences in particular have really resonated with the film, making up 66.7% of the total.

The same goes for DreamWorks' surprisingly popular hit The Croods, which currently stands at ninth place in the U.S. for the year. The Croods' international audiences, however, made up more than any other movie in this list, at 68% of its box office total.

Of course, I would have been shocked if Time Warner's Man of Steel hadn't made the top three, and remember this Superman reboot has been in theaters for roughly only six weeks. In addition, the world was pleasantly surprised when Time Warner subsequently gave DC Comics fans reason to rejoice by announcing that Batman will join the title character in a sequel planned for a 2015 release.

For now, though, Time Warner investors can also enjoy the surprising strength and comparatively low production budget of Despicable Me 2, which was only released on July 3 and effectively played the role of the silver bullet to Disney's The Lone Ranger a few weeks ago. 

Don't roll the credits just yet
In the meantime, however, let's not forget there's still plenty of time for this list to change as 2013 rolls on.

Remember, News Corp.'s 20th Century Fox unleashes The Wolverine this weekend, which I'm guessing should have little trouble recouping its estimated $125 million budget given the relative success of the company's previous X-Men films.

The Wolverine. Image source: thewolverinemovie.com.

Then again, Disney also has a few more cards to play this year, including DisneyToon's Planes, a promising spinoff from Pixar's Cars franchise, which also launches two weeks from today.

For the comic-book fans out there, Disney is also offering Thor: The Dark World in November. And if you can't wait until then and don't mind comic book movies of the R-Rated variety, Comcast's Universal is bringing both 2 Guns and Kick-Ass 2 to theaters in August.

Some of the biggest competition to mix up the current top 10, however, should arrive as 2013 comes to a close.

In November, for example, Lions Gate (NYSE: LGF  ) will release The Hunger Games: Catching Fire, which has some big shoes to fill after the first film in the franchise achieved more than $691 million in global ticket sales last year.

Finally, Warner Brothers has plenty at stake with The Hobbit: The Desolation of Smaug, which arrives in December and follows a more than $1 billion showing from 2012's The Hobbit: An Unexpected Journey.

While there's still plenty of money to be made on the big screen, you can also bet these companies know the opportunity doesn't end with their movies' theatrical runs. The future of television begins now -- with an all-out $2.2 trillion media war that pits cable companies such as Cox, Comcast, and Time Warner against technology giants such as Apple, Google, and Netflix. The Motley Fool's shocking video presentation reveals the secret Steve Jobs took to his grave, and explains why the only real winners are these three lesser-known power players that film your favorite shows. Click here to watch today!

But what do you think? Is there another movie coming this year you think could change the list above? Feel free to weigh in using the comments section below.

Will Express Scripts Holding Beat These Analyst Estimates?

Express Scripts Holding (Nasdaq: ESRX  ) is expected to report Q2 earnings on July 29. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Express Scripts Holding's revenues will wither -7.9% and EPS will grow 25.0%.

The average estimate for revenue is $25.50 billion. On the bottom line, the average EPS estimate is $1.10.

Revenue details
Last quarter, Express Scripts Holding reported revenue of $26.06 billion. GAAP reported sales were much higher than the prior-year quarter's $12.13 billion.

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

EPS details
Last quarter, non-GAAP EPS came in at $0.99. GAAP EPS of $0.45 for Q1 were 18% lower than the prior-year quarter's $0.55 per share.

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

Recent performance
For the preceding quarter, gross margin was 7.7%, 80 basis points better than the prior-year quarter. Operating margin was 3.8%, 110 basis points worse than the prior-year quarter. Net margin was 1.4%, 80 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $101.17 billion. The average EPS estimate is $4.29.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 799 members out of 847 rating the stock outperform, and 48 members rating it underperform. Among 232 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 223 give Express Scripts Holding a green thumbs-up, and nine give it a red thumbs-down.

Best Stocks To Own Right Now

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Express Scripts Holding is outperform, with an average price target of $64.22.

Is Express Scripts Holding the best health care stock for you? Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks," including one above-average health care logistics company. Click here for instant access to this free report.

Add Express Scripts Holding to My Watchlist.

No 8th Indication for You, Humira

Humira is without a doubt the most important drug for AbbVie (NYSE: ABBV  ) . In the first quarter, sales of Humira were $2.2 billion, making up more than half of total sales.

Expanding the drug into axial spondyloarthritis? Not so much.

Shares hardly moved yesterday after a Food and Drug Administration advisory committee shot down the idea of expanding Humira's use. The panel voted 12 to 1 recommending against approving the drug to treat axial spondyloarthritis.

Humira is already approved to treat rheumatoid arthritis, plaque psoriasis, Crohn's disease, ulcerative colitis, ankylosing spondylitis, psoriatic arthritis, and juvenile idiopathic arthritis.

Axial spondyloarthritis is a precursor to ankylosing spondylitis, which all four TNF inhibitors -- Amgen (NASDAQ: AMGN  ) and Pfizer's (NYSE: PFE  ) Enbrel, Johnson & Johnson's (NYSE: JNJ  ) Remicade and Simponi, and AbbVie's Humira -- are all approved for. But none of them are approved for axial spondyloarthritis, and it doesn't look like Humira will get the nod on this go with the FDA.

The agency has the final say, but the briefing documents for the committee members released last week posed similar questions about the trial design, so it seems unlikely the FDA would go against its panel of outside experts.

Axial spondyloarthritis is in the eye of the beholder
The FDA's and the panel's issue is that characterizing patients with axial spondyloarthritis isn't easy. The main symptom of axial spondyloarthritis is back pain caused by inflammation, but it isn't severe enough to show up on an X-ray. Ankylosing spondylitis, by contrast, is characterized by spinal fusion.

Best Stocks To Watch For 2014

Back pain could, of course, be caused by a lot of other issues other than inflammation, but the FDA doesn't want patients exposed to potentially dangerous side effects if they won't benefit from the drug. Humira -- and the rest of the TNF inhibitors -- reduce the inflammation by inhibiting the immune system, which can lead to infections

AbbVie tried to ensure that the back pain was due to inflammation by defining the treatment group as those with objective signs of inflammation by elevated c-reactive protein or magnetic resonance imaging. But the patients couldn't have progressed far enough that they were considered to have ankylosing spondylitis. To separate those out, pelvis X-rays were performed.

Unfortunately these X-rays are apparently subjective. There were 38 patients -- out of 102 -- who entered into the study because the local investigators said their pelvis X-rays were negative who were then reclassified as having ankylosing spondylitis by the central reviewer. Considering what radiologists can miss on an X-ray, it's not surprising that they might have a differing opinion of disease progression.

Having that many patients with ankylosing spondylitis in the trial makes it somewhat useless, especially since Humira is already approved to treat ankylosing spondylitis.

AbbVie or one of the other drugmakers with a TNF inhibitor could try to run another trial with more controls for those enrolled in the clinical trial -- but the tighter the definition, the smaller the potential treatment group once the drug is approved. They might have a better return on their investment expending energy on finding patients in the already-approved indications.

One of the best parts of owning big pharma stocks like AbbVie is their attractive dividends, but you should consider diversifying with high-yielding stocks from multiple industries. The Motley Fool's special free report "Secure Your Future With 9 Rock-Solid Dividend Stocks" outlines the Fool's favorite dependable dividend-paying stocks across all sectors. Grab your free copy by clicking here.

Top 5 Safest Companies To Buy Right Now

The New York Times called it a "moment of reckoning." Widely followed commodities trader Dennis Gartman in a note to his clients wrote that he's "never...ever...EVER" seen anything quite like it.

The references, of course, are to March 15's collapse in the price of gold, the largest single-day percentage drop in 30 years, capping a two-day decline of 13%.

The selling was triggered in part by worries that Cyprus and possibly other European nations might have to dump their gold holdings to raise funds or satisfy bailout requirements. Also, after acting as a commodities tailwind for much of the past two years, the Fed's quantitative easing program looks to be winding down, which would relax inflationary pressure.

Suddenly, the "safest" investment no longer seemed so safe. In fact, there's a good chance that gold's 12-year streak of uninterrupted gains will come to an end this year.

Top 5 Safest Companies To Buy Right Now: 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.

Top 5 Safest Companies To Buy 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 Fernandez]

  Under Armour designs, develops, markets, and distributes performance apparel, footwear, and accessories for men, women, and youth primarily in the United States and Canada.
  

  You’ve probably seen the company’s “Protect This House” or “Click-Clack” commercials, and probably seen anyone from the weekend warrior to professional sports teams wearing the company’s moisture-wicking synthetic fabrics, which are designed to keep perspiration away from the skin, and regulate body temperature regardless of weather conditions.

  I must admit for full disclosure that I am an Under Armour nut, and own about 20 pairs of their shorts, shirts and shoes.

  I can attest from personal experience as a natural bodybuilder and athlete that the Under Armour apparel are the best workout clothing I have ever worn, and they look pretty darn cool too.

  Now let me make a clear distinction between a great company, and a great stock.

  Up until recently, Under Armour was the former, but not the latter.

  It has now entered into a zone where the valuation metrics, even in the face of a consumer slowdown, is looking more and more attractive.

  In fact, Under Armour just released earnings Monday.

  They were pretty much in line with analyst’s expectations, and then Under Armour slightly lowered their forward guidance for the remainder of 2008 based on those same consumer headwinds.

  The market liked what it heard sending shares up 20% (of course, the overall market was up 10%, so…). Shares have since rebounded further are now up almost 50% from their lows just last week!

  This leads me to my investment thesis in shares of Under Armour.

  I believe that Under Armour represents one of the quintessential brands of this decade when it comes to sports apparel, the way Under Armour’s fiercest rival Nike (NYSE: NKE) dominated the 90’s.

  Until now the valuation of the company was not commensurate with the! projected profit and growth, which I thought were way too high, and still might be, along with certain inventory related problems that the company now seems to be getting a handle on.

  Still, with the spike in share price, along with the uncertainty in the market and overall economy, I feel that we will still be able to purchase shares of this great company at a great price in the near future and that we’re seeing a bit of a short squeeze in shares of Under Armour.

  Why I Like the Company: One of the quintessential brands of this decade; Valuation is reaching reasonable to “cheap” levels depending on direction of consumer market and Under Armour’s stock price; Dedicated and fully invested founder with over 77% voting power via class B shares; Improved business fundamentals via better inventory controls and operational structure, and new product offerings; Further expansion available outside the U.S.; Relatively higher margins than competition

• [By Roger]

  Under Armour (NYSE:UA), a maker and designer of apparel, footwear and accessories that target sports enthusiasts, has more than doubled in one year. But despite the advance, many research firms still have a “strong buy” recommendation on the stock. And S&P recently revised its annual target to $93.

  Technically UA has advanced on a series of stair steps, sometimes called “base moves.”? These are very bullish formations that resemble cups. UA reversed up recently following a signal from our proprietary Collins-Bollinger Reversal (CBR) indicator. If the recent pullback to its 50-day moving average (blue line) holds, then the next move up should break the prior high with a target of $85.

  Traders could take risk positions now with a target of $85 to $90. But be careful and use stop-loss orders to protect against a violent reversal, which could drop prices back to support at $62 where this volatile stock could be bought again.

5 Best Stocks To Buy 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 ETF Authority]  

  Current Price: $47.68 12-month target: $80

  PBR plans to invest $174 billion by 2013 to support the largest oil discovery in 30 years. PetroBras has both the backing of the Brazilian government who invested over $30 billion and the Chinese private investors who have pledged over $20 billion to PBR’s discovery. Brazils government proposed to make PBR the only operator of all new offshore pre-salt oil fields yet to be exploited. PetroBras expects oil production to increased from 2.4 million barrels a day to around 5.7 million barrels a day by 2020. PBR has long-term views and have been expanding renewable energy programs such as solar, biofuel, and energy. Biofuel production is expected to increase 18% by 2013.

Top 5 Safest Companies To Buy 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.

4 Stocks Making Big Moves

The following video is from Monday's Investor Beat, in which host Chris Hill and analysts Jason Moser and Andy Cross dissect the hardest-hitting investing stories of the day.

Boeing's (NYSE: BA  ) 787 Dreamliner was back in the news (and not for good reasons), which is one reason we prefer Precision Castparts (NYSE: PCP  ) . Ulta Salon (NASDAQ: ULTA  ) names a new CEO. Tenet Healthcare (NYSE: THC  ) makes a big buy. And Facebook (NASDAQ: FB  ) is reportedly working on a news service for mobile devices. In this installment of Investor Beat, Andy and Jason discuss four stocks making big moves.

Boeing operates as a major player in a multitrillion-dollar market in which the opportunities and responsibilities are absolutely massive. However, emerging competitors and the company's execution problems have investors wondering whether Boeing will live up to its shareholder responsibilities. The Fool's premium research report on the company provides investors with the must-know issues surrounding Boeing. They'll be updating the report as key news hits, so don't miss out -- simply click here now to claim your copy today.

The relevant video segment can be found between 2:55 and 5:56.

How Dividends Change the Game for McDonald's Shareholders

3 Predictions for Next Week

I went out on a limb last week, and now it's time to see how that decision played out.

I predicted that Intuitive Surgical (NASDAQ: ISRG  ) would close higher on the week. The company behind the da Vinci surgical robotics system took a hit a week earlier after revealing that sales were soft in its latest quarter. I figured the bad news was already out of the way heading into Thursday's report. Unfortunately, the report was an even bigger disappointment. The stock fell 8% on the week. I was wrong. I predicted that the tech-heavy Nasdaq would outperform the Dow Jones Industrial Average. (DJINDICES: ^DJI  ) . This has been a tricky call lately, so how did it play out this time? Well, this was a close race until tech stocks fell on Friday. The Nasdaq moved 0.3% lower, and the Dow managed to close 0.5% higher. I was wrong. My final call was for CSX (NYSE: CSX  ) to beat Wall Street's income estimates in its latest quarter. The railroad giant has been posting blowout quarterly results over the past year, and I was banking on seeing the trend continue. Analysts were looking for a profit of $0.47 a share during the quarter, and it came through with net income of $0.52. I was right.

One out of three? I can do better than that.

Let me once again whip out my trusty, dusty, and occasionally accurate crystal ball to make three calls that may play out over the next few trading days.

1. Apple will close higher on the week
It's time for Apple (NASDAQ: AAPL  ) to shine. The consumer-tech giant has been a disappointing investment since the iPhone 5 came out, and it probably doesn't help matters that many of Apple's tech peers posted uninspiring quarterly results this past week.

However, Apple has been beaten down too far. Everybody knows that margins are being squeezed at this stage in the product cycle of the tech bellwether's main products. There's so much pessimism baked into the numbers that the market should give a positive interpretation to even a ho-hum report on Tuesday.

My first call is for Apple to close higher on the week.

2.The Nasdaq Composite will beat the Dow this week
Tech has been a big winner in recent years, so betting on tech over stodgy blue chips has been a good bet for me more often than not.

I'm going to stick with this pick. Most of the names in the composite are just too cheap at this point, and tech should be what carries us through the economic recovery. Yes, last week's earnings reports were rough out of some of the big names in the index, but the long-term outlook is still quite favorable.

The market is ripe for the tech-stacked secondary stocks to continue to outpace the 30 megacaps that make up the Dow Jones Industrial Average.

3. RF Micro Devices will beat Wall Street's earnings estimates
Some stocks are just flat-out better than others.

RF Micro Devices (NASDAQ: RFMD  ) is a chipmaker that's fared well in getting its smartphone chips into devices of the world's two biggest players in this growing space. Another thing it does is make analysts look like perpetual underachievers. If analysts say the company posted a profit of $0.07 a share in its latest quarter, I'll argue that it held up better than that. History's on my side!

One of my best tricks to beating the market is finding stocks that perpetually land ahead of the prognosticators. Let's go over the past year of earnings reports.

Quarter

EPS Estimate

EPS

Surprise

Q1 2013	$0.01	$0.01	0%
Q2 2013	$0.01	$0.03	200%
Q3 2013	$0.08	$0.06	33%
Q4 2013	$0.05	$0.06	20%

Source: Thomson Reuters.

Things can change, of course. We've seen reports of weakening demand for iPhones and Samsung devices. Wall Street also may seem to be a bit aggressive in targeting 42% top-line growth for RF Micro Devices in its latest quarter.

However, it's hard to argue against the trend. Everything seems to be falling into place for another market-thumping quarter on the bottom line.

Three for the road
Well, there are three predictions right there. Let's see how I fare this week.

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.

5 Best Blue Chip Stocks To Buy For 2014

With the first quarter's earnings season essentially in the books, the bull run we've seen from� the Dow Jones Industrial Average (DJINDICES: ^DJI  ) over the past weeks ran out of fuel as the blue chips finished down slightly by 0.1%, or 19 points.

On a day with no major earnings releases or significant economic reports, acquisitions stole the headlines, specifically Yahoo!'s (NASDAQ: YHOO  ) purchase of the blogging site Tumblr for $1.1 billion. The deal represents CEO Marissa Mayer's first major acquisition since taking the helm last year, and the blogging service brings Yahoo! 300 million unique visitors a month, about half of which access the site through mobile devices. Elsewhere, drugmaker Actavis said it would purchase Warner Chilcott in an all-stock transaction for $5 billion, and Internet security specialist Websense jumped 29% after agreeing to be taken private by Vista Equity Group for $907 million. The deals helped pump some lifeblood into equities as the Dow was up as much 0.25% at midday, but the rally faded in the afternoon.

5 Best Blue Chip Stocks To Buy For 2014: Visa Inc.(V)

Visa Inc., a payments technology company, engages in the operation of retail electronic payments network worldwide. It facilitates commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities. The company owns and operates VisaNet, a global processing platform that provides transaction processing services. It also offers a range of payments platforms, which enable credit, charge, deferred debit, debit, and prepaid payments, as well as cash access for consumers, businesses, and government entities. The company provides its payment platforms under the Visa, Visa Electron, PLUS, and Interlink brand names. In addition, it offers value-added services, including risk management, issuer processing, loyalty, dispute management, value-added information, and CyberSource-branded services. The company is headquartered in San Francisco, California.

Advisors' Opinion:

• [By Jeff Reeves]

  Despite a very rough 2011 so far, payment processor Visa (NYSE:V) is right there beside Apple with gains of nearly 30% since the first of the year. Visa stock continues to set 52-week highs and is within striking distance of new all-time highs above $97.

  Visa doesn’t have quite the track record of many blue chips, having only gone public in 2008. However, there are some big reasons to expect that the recent growth is not just a flash in the pan.

  For starters, the demographic trends are hard to ignore. The percentage of cashless transactions continues to rise. Despite rapid growth from fees for payment processing, 40% of all transactions in the U.S. still are done with cash or paper checks. That’s to say nothing of rapid growth of debit and credit card business in emerging markets. Visa’s logo is everywhere and will only be accepted in more places as the months go by.

  And don’t forget, Visa is not a financial stock. Service fees account for more than one-third of revenue — meaning the stock is little more than a toll-taker on the road between a merchant and a customer’s checking account. It is not exposed to bad debt the way financial stocks like Bank of America (NYSE:BAC) and others are.

  Visa has seen year-over-year earnings growth every single quarter since going public, and it should keep up that growth. Additionally, revenue was up 17% from fiscal 2009 to fiscal 2010 and is forecast to jump another 12% in fiscal 2011.

  There is big growth to be had at Visa. It might not be Apple, but its strong growth potential and dominant brand make it a go-to stock for large-cap investors.

• [By Robert Holmes]

  Company Profile: Visa is the global credit card company.

  Share Price: $95.69 (Dec. 6)

  2011 Return: 36%

  Investment Thesis: "Visa is well-positioned to continue to capitalize on the electronic payments secular growth trend," William Blair analysts write of Visa, noting that secular growth of electronic payments is expected to average 10% to 12% globally over the next several years.

  The analysts also say that Visa also enjoys very high incremental margins, which contributes to the company's attractive margin profile (59% in fiscal 2011) and strong free cash flow.

  "Visa has a strong balance sheet and generates strong cash flow," the analysts write. "Visa had about $4.1 billion of cash and investments, $2.9 billion of litigation reserves, and no debt on its balance sheet as of Sept. 30, 2011. Guidance calls for more than $4 billion of free cash flow in fiscal 2012."

5 Best Blue Chip Stocks To Buy For 2014: International Business Machines Corporation(IBM)

International Business Machines Corporation (IBM) provides information technology (IT) products and services worldwide. Its Global Technology Services segment provides IT infrastructure and business process services, including strategic outsourcing, process, integrated technology, and maintenance services, as well as technology-based support services. The company?s Global Business Services segment offers consulting and systems integration, and application management services. Its Software segment offers middleware and operating systems software, such as WebSphere software to integrate and manage business processes; information management software for database and enterprise content management, information integration, data warehousing, business analytics and intelligence, performance management, and predictive analytics; Tivoli software for identity management, data security, storage management, and datacenter automation; Lotus software for collaboration, messaging, and so cial networking; rational software to support software development for IT and embedded systems; business intelligence software, which provides querying and forecasting tools; SPSS predictive analytics software to predict outcomes and act on that insight; and operating systems software. Its Systems and Technology segment provides computing and storage solutions, including servers, disk and tape storage systems and software, point-of-sale retail systems, and microelectronics. The company?s Global Financing segment provides lease and loan financing to end users and internal clients; commercial financing to dealers and remarketers of IT products; and remanufacturing and remarketing services. It serves financial services, public, industrial, distribution, communications, and general business sectors. The company was formerly known as Computing-Tabulating-Recording Co. and changed its name to International Business Machines Corporation in 1924. IBM was founded in 1910 and is based in Armonk, New York.

Advisors' Opinion:

• [By Paul]

  IBM. Emerging markets are a big growth driver for this computer systems and software provider. Not only that, Resendes says, IBM has "a bullet-proof balance sheet that will allow it to weather the current storm and position it for superior growth and profitability in the long term." He thinks the stock, which recently traded at $93, is worth $120 a share: ''There are some obvious companies that offer much bigger discounts, but you have to incorporate the safety factor. You're getting a premium company here that's a good spot to be in within the tech space."

• [By Jim Cramer]

  When this company talked about lofty EPS for 2015, initially the street was skeptical especially after IBM reported a blah quarter soon after the expectations were laid out. I now think the company has $20 earnings per share capabilities out three years and that $13 is doable for 2011. You keep the multiple the same and you get a $169 stock. I think it does just that. This one's cheap, way too cheap and it will be cheap next year, too, but on a bigger earnings base which is how it can get to my price target.

• [By Peter Hughes]

  International Business Machines (IBM) -- our aggressive pick for the year -- is one of the world's most dominant technology companies, with annual revenues of $105 billion and net income of $16 billion.

• [By Louis Navellier]

  IBM (NYSE:IBM) is an international IT company made famous by its line of personal computers and various IT services. A year-to-date gain of 18% shows IBM stock has a lot to offer.

Best Stocks To Own Right Now: Apple Inc.(AAPL)

Apple Inc., together with subsidiaries, designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. The company sells its products worldwide through its online stores, retail stores, direct sales force, third-party wholesalers, resellers, and value-added resellers. In addition, it sells third-party Mac, iPhone, iPad, and iPod compatible products, including application software, printers, storage devices, speakers, headphones, and other accessories and peripherals through its online and retail stores; and digital content and applications through the iTunes Store. The company sells its products to consumer, small and mid-sized business, education, enterprise, government, and creative markets. As of September 25, 2010, it had 317 retail stores, including 233 stores in the United States and 84 stores internationally. The company, formerly known as Apple Computer, Inc., was founded in 1976 and is headquartered in Cupertino, California.

Advisors' Opinion:

• [By Kevin M. O'Brien]

  Apple Inc. (AAPL) will reach $500.00/share at some point in 2012. I view Apple as trading at an extreme discount right now. I am expecting to see a run-up in price ahead of the company's next earnings call on January 17, 2012. I am also expecting that this earnings release is going to be absolutely fantastic. It would be a wise choice to block out all the negative rumors and sentiment surrounding Apple right now. This is a stock that is so attractively priced right now that it will not stay at this level for very long. Check back with me after January 17th next year.

• [By Michael]

  This is another technology stock with great potential.  With each new release of an iPhone or iPad device, the stock continues to climb.  They have the “wow” factor down and I don’t see this changing any time soon.  Their new server farm in Charlotte, NC just went online as iCloud.  I think this is going to make a huge long term difference.  But in the short term, you have very regular releases of new versions of their flashy devices.  As long as they keep that up, the stock will continue to rise.  Although Steve Jobs is no longer here with us, he probably left a road map for Apple to fol low for the next 3-5 years.  The question will be whether Tim Cook will be able to execute on those plans.

• [By Jonas]

  It seems everyone is abuzz with Apple these days. They have a good product, lots of vision, and decent value in share price. But why would I buy this on a market pullback? Apple trades close to the S&P 500 (SPY) as well it should since Apple makes up a huge part of the S&P 500 market cap. However, shares of Apple have higher relative strength than the market. This means that while Apple shares will surely fall with the price during a pullback, they will also rebound quicker and rise farther with the next leg up.

  If the market pulls back, I'd wait for the 1,365 - 1,370 level to be hit and then grab some shares of Apple.

5 Best Blue Chip Stocks To Buy For 2014: Philip Morris International Inc(PM)

Philip Morris International Inc., through its subsidiaries, engages in the manufacture and sale of cigarettes and other tobacco products in markets outside of the United States. Its international product brand line comprises Marlboro, Merit, Parliament, Virginia Slims, L&M, Chesterfield, Bond Street, Lark, Muratti, Next, Philip Morris, and Red & White. The company also offers its products under the A Mild, Dji Sam Soe, and A Hijau in Indonesia; Diana in Italy; Optima and Apollo-Soyuz in the Russian Federation; Morven Gold in Pakistan; Boston in Colombia; Belmont, Canadian Classics, and Number 7 in Canada; Best and Classic in Serbia; f6 in Germany; Delicados in Mexico; Assos in Greece; and Petra in the Czech Republic and Slovakia. It operates primarily in the European Union, Eastern Europe, the Middle East, Africa, Asia, Canada, and Latin America. The company is based in New York, New York.

Advisors' Opinion:

• [By Michael Brush]

  Philip Morris International (PM) has a dividend yield of 3.7%.

  This company is the world's second-biggest cigarette seller, after China National Tobacco. Philip Morris International controls the rights outside the United States to such brands as Marlboro, Virginia Slims and Parliament. So it's positioned to sell more cigarettes as smokers in rapid-growth emerging markets earn more and trade up to premium brands.
  

   

  Insiders continue to buy the stock, suggesting room for further appreciation. And, of course, tobacco's addictive nature assures steady revenue. If you oppose smoking for moral, health or other reasons, this stock is not for you. As an ex-smoker, I'd understand.

5 Best Blue Chip Stocks To Buy For 2014: McDonald's Corporation(MCD)

McDonald?s Corporation, together with its subsidiaries, operates as a worldwide foodservice retailer. It franchises and operates McDonald?s restaurants that offer various food items, soft drinks, coffee, and other beverages. As of December 31, 2009, the company operated 32,478 restaurants in 117 countries, of which 26,216 were operated by franchisees; and 6,262 were operated by the company. McDonald?s Corporation was founded in 1948 and is based in Oak Brook, Illinois.

Advisors' Opinion:

• [By ETF_Authority]

  McDonald’s Corporation (MCD), together with its subsidiaries, operates as a foodservice retailer worldwide. The company has raised distributions for 35 years in a row. The 10 year annual dividend growth rate is 26.50%/year. The last dividend increase was 14.75% to 70 cents/share. Analysts are expecting that McDonald's will earn $5.73/share in 2012. I expect that the quarterly dividend will reach 77 cents/share in 2012. Yield: 2.80%

• [By Martin]

  The company is one of the world’s most recognized brands. The Golden Arches has locations all over the world. McDonald’s has managed to continually reinvent itself and its menu, and delivered strong shareholder returns in the process. However, it is lagging behind Yum! Brands (NYSE:YUM) in China, which is a key market for growth. While the 10-year dividend growth rate is at 26%, I expect distribution growth over the next decade to average 10%.

• [By Brian Gorban]

   Fast food giant and world-renowned company McDonald’s (NYSE: MCD) is undoubtedly a name you’ve heard of, as “the golden arches” are ubiquitous--and with good reason: The company operates over 33,000 restaurants in 119 countries. With over $27 billion in revenue and a market capitalization near $90 billion, McDonald’s is simply a juggernaut and should continue to be a beneficiary of the global growth story happening predominately in the “BRIC” (Brazil, Russia, India, and China) countries in the years and decades to come.

  Of course, those countries have not been spared the current economic carnage and that has caused the company to miss the past two quarters’ consensus estimates, but that has created a buying opportunity. With the stock trading not far above its $83.31 52-week low, McDonald’s is now yielding an attractive 3.5% dividend yield, and with a low 54% payout ratio, look for the dividend to not only be safe but be raised in the near future. Add in the fact that the company has a comparatively and historically low 16x forward and trailing P/E, and I think MCD should serve investors well for the long-term while one can wait and happily collect the nice 3.5% dividend.

How Altria Earnings Could Keep Shares Smoking

Altria (NYSE: MO  ) will release its quarterly report next Tuesday, and the stock has made its way higher to reach its best levels since the company spun off its interest in globally focused Philip Morris International. Even as usual concerns about the health impacts of tobacco, and regulatory pressure, continue to weigh on the industry, Altria earnings look poised to keep growing steadily.

Altria's business is deceptively simple, obtaining tobacco and then imposing big markups in its well-marketed cigarettes and other tobacco products. Having largely avoided massive product lawsuit liability, Altria and its peers have rewarded long-term shareholders with huge dividend payouts throughout their history. Let's take an early look at what's been happening with Altria over the past quarter, and what we're likely to see in its quarterly report.

Stats on Altria

Analyst EPS Estimate	$0.63
Year-Ago EPS	6.8%
Revenue Estimate	$4.62 billion
Change From Year-Ago Revenue	0.9%
Earnings Beats in Past 4 Quarters	2

Source: Yahoo! Finance.

How will Altria earnings fare this quarter?
Analysts have largely kept their views on Altria earnings stable recently, with no change to their June-quarter estimates, and a single $0.01 per-share rise for consensus figures for the 2013 and 2014 years. The stock has continued its slow but steady ascent, rising about 6% since mid-April.

The simple story of Altria's success generally involves making the most of its opportunity for as long as it lasts. Even as revenue has been flat, and volumes of its premium Marlboro brand have dropped substantially in recent years, the company has nevertheless used a combination of cost-cutting and higher sales prices to keep its margins rising and ensure growth in profits.

Nevertheless, Altria has continued feeling the pinch of greater regulation and higher excise taxes. Proposals in the Obama administration's budget to raise cigarette taxes by another $0.94 per pack would give Altria and its peers even greater headaches, and even though the budget seems unlikely to pass, regulatory threats, and anti-smoking campaigns, continue to weigh on Altria's future prospects.

Another problem that could eventually hit Altria earnings is counterfeiting. So far, Altria, Lorillard, and Reynolds American haven't seen a huge hit from counterfeiting within the U.S., as sophisticated packaging that makes counterfeiting more difficult has been an effective deterrent, and Philip Morris International has had to deal with the much-more challenging European market in protecting its brands. Yet, as proposals for higher taxes at the state and federal level add to costs, the incentives for counterfeiting keep rising, and the problem could worsen for Altria looking forward.

In the Altria earnings report, watch to see how the tobacco giant responds to efforts from rival Lorillard to bolster its e-cigarette business. With greater regulation making Americans seek alternative ways to get nicotine, e-cigarettes are gaining in popularity, and Altria has promised to come out with a product in August that will serve the market. Depending on how the FDA chooses to regulate e-cigarettes, the company's success or failure with its product could make a huge difference to Altria earnings going forward.

Altria's long-term record has shown that 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 some other 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.

Click here to add Altria to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.

The Dow Continues Its Earnings Ramp-Up

Investors cast their eyes in two different directions today as Federal Reserve Chairman Ben Bernanke continues to give congressional testimony while the peak of earnings season is upon us. The stock market chose to accentuate the positives of today's news, as good quarterly results from the higher-share-price components of the Dow Jones Industrials (DJINDICES: ^DJI  ) overwhelmed less enthusiastic reports from some of the lower-priced Dow components. As of 10:50 a.m. EDT the Dow is trading at record-high levels once more, gaining 113 points. The S&P 500 also hit new highs, up 0.7% for the day.

One thing investors should keep in mind about earnings season is that it often follows a similar pattern. Going into the season, overall expectations usually hit bottom right before companies start to report, as the companies that are most concerned about their prospects tend to issue preannounced earnings warnings that pull down the overall earnings-growth projections of the market. With the bar thus set low, companies are often able to beat lowered expectations, boosting earnings back upward and inspiring the stock market to post bigger gains. Even though we're only a week and a half into earnings season, that seems to be the pattern we're following this quarter as well.

The big earnings winner is UnitedHealth (NYSE: UNH  ) , which has soared 5% after posting a 12% gain in revenue and about a 10% jump in earnings per share, along with boosting the lower end of its earnings guidance for the full year. UnitedHealth increased its count of policyholders by 3.2 million during the quarter, but the real test for the company will come when Obamacare's individual mandate takes effect at the beginning of 2014. If UnitedHealth can outpace its rivals in securing higher-margin customers, then the remaining question will be whether Obamacare reverses the recent trend toward reduced numbers of patients using medical services, which have helped insurers.

IBM (NYSE: IBM  ) has posted a weaker climb of 2.7%, but given its dominance of the Dow, it actually had a greater positive impact on the average than UnitedHealth. Ahead of IBM's quarterly report, many investors had feared that a slowdown in IT consulting activity reported by IBM competitors would hurt Big Blue's results, and that trend played a role in the company's 17% drop in earnings on about 3% lower revenue. But the company managed to improve its margins by more than a full percentage point, making the most of its waning revenue. Moreover, raising its guidance for full-year operating earnings by $0.20 per share helped make IBM investors more enthusiastic about the prospects for the company's big-data efforts and other growth initiatives.

Finally, grocery store operator SUPERVALU (NYSE: SVU  ) has soared 17% following its own favorable earnings report. The company sold off many of its most popular chains to private-equity firm Cerberus Capital earlier this year, but SUPERVALU's efforts to cut its costs and capitalize on its remaining chains have borne fruit as the company reported adjusted profits that more than doubled estimates. Going forward, the grocery industry remains challenging, as same-store sales declines reflect. But in the midst of its reorganization, SUPERVALU appears to be moving in the right direction.

Earnings give you some valuable information about short-term performance, but for long-term investors, the best investing approach is to choose great companies and stick with them for years. 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.

Carnival Cruises Ahead With Steady Dividend

Cruise ship operator Carnival (NYSE: CCL  ) (NYSE: CUK  )  announced today its third-quarter dividend of $0.25 per share, the same rate it's paid since 2011.

The board of directors said the quarterly dividend is payable on Sept. 13 to the holders of record at the close of business on Aug. 23. The cruise line operator said investors in its Carnival stock, as well as its American depository shares, which trade on the NYSE under the symbol CCL, will receive the payout in U.S. dollars. Holders of its stock representing its London-based operations, which trade on the NYSE under the symbol CUK, will be paid in either U.S. dollars or sterling. 

Dividends payable in sterling will be converted from U.S. dollars at the exchange rate quoted by the Bank of England in London at 12 noon on Sept. 3.

Carnival paid a special dividend of $0.50 per share last December.

The regular dividend payment equates to a $1.00-per-share annual dividend, yielding 2.8% based on the closing price today of Carnival's stock and ADS and yields 2.7% for its London-based operations stock.

CCL Dividend data by YCharts. Chart reflects special dividend paid in December 2012

The Chart That Says You're Right on Luminex

There's no foolproof way to know the future for Luminex (Nasdaq: LMNX  ) or any other company. However, certain clues may help you see potential stumbles before they happen -- and before your stock craters as a result.

A cloudy crystal ball
In this series, we use accounts receivable and days sales outstanding to judge a company's current health and future prospects. It's an important step in separating the pretenders from the market's best stocks. Alone, AR -- the amount of money owed the company -- and DSO -- the number of days' worth of sales owed to the company -- don't tell you much. However, by considering the trends in AR and DSO, you can sometimes get a window onto the future.

Sometimes, problems with AR or DSO simply indicate a change in the business (like an acquisition), or lax collections. However, AR that grows more quickly than revenue, or ballooning DSO, can, at times, suggest a desperate company that's trying to boost sales by giving its customers overly generous payment terms. Alternately, it can indicate that the company sprinted to book a load of sales at the end of the quarter, like used-car dealers on the 29th of the month. (Sometimes, companies do both.)

Why might an upstanding firm like Luminex do this? For the same reason any other company might: to make the numbers. Investors don't like revenue shortfalls, and employees don't like reporting them to their superiors.

Is Luminex sending any potential warning signs? Take a look at the chart below, which plots revenue growth against AR growth, and DSO:

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. FQ = fiscal quarter.

The standard way to calculate DSO uses average accounts receivable. I prefer to look at end-of-quarter receivables, but I've plotted both above.

Watching the trends
When that red line (AR growth) crosses above the green line (revenue growth), I know I need to consult the filings. Similarly, a spike in the blue bars indicates a trend worth worrying about. Luminex's latest average DSO stands at 49.4 days, and the end-of-quarter figure is 42.5 days. Differences in business models can generate variations in DSO, and business needs can require occasional fluctuations, but all things being equal, I like to see this figure stay steady. So, let's get back to our original question: Based on DSO and sales, does Luminex look like it might miss its numbers in the next quarter or two?

I don't think so. AR and DSO look healthy. For the last fully reported fiscal quarter, Luminex's year-over-year revenue grew 9.2%, and its AR dropped 7.0%. That looks OK. End-of-quarter DSO decreased 15.8% from the prior-year quarter. It was down 22.9% versus the prior quarter. Still, I'm no fortuneteller, and these are just numbers. Investors putting their money on the line always need to dig into the filings for the root causes and draw their own conclusions.

Looking for alternatives to Luminex? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.

Add Luminex to My Watchlist.

Choice Properties REIT Lifting IPOs Above TSX: Corporate Canada

Real estate investment trusts led by Choice Properties REIT (CHP-U) are helping initial public offerings outpace Canada's benchmark index for the first time in four years on speculation dividend payers will hold up better than commodity shares as global economic growth slows.

Eight stocks that began trading in Canada in 2013 have advanced 3.5 percent as of July 12, according to data compiled by Bloomberg on companies with a market value of at least C$100 million ($96.1 million). That compared with a 0.2 percent gain in the Standard & Poor's/TSX Composite Index (SPTSX), the first time since 2009 IPO stocks have outperformed the commodity-heavy benchmark over a comparable period.

More than half of the initial offerings this year have been REITs. The largest, Choice Properties, which holds the real estate properties of grocer Loblaw Cos. (L), had risen 1.5 percent this year after its C$400 million initial offering on July 5. Choice gained 1 percent to C$10.15 at 4 p.m. in Toronto trading today.

"Anything yield-oriented is still doing well, outside of that it's hard to get anyone excited about putting money into resource exploration companies or energy companies," said Anil Tahiliani, fund manager with McLean & Partners in Calgary, who helps manage about C$1 billion.

The S&P/TSX's slight gain this year compares with a 12 percent advance in the MSCI World Index, which tracks equity markets from developed nations. Raw-materials and energy stocks make up 58 percent of equities in the S&P/TSX.

China GDP

Gross domestic product in China, the world's biggest consumer of commodities, is expected to grow 7.6 percent this year and next, according to the median estimate of economists surveyed by Bloomberg, down from a five-year average of 9.3 percent from 2008 to 2012.

The International Monetary Fund cut its projection for global growth in 2013 for a fifth time on July 9, to 3.1 percent from 3.3 percent in April. China's growth was lowered to 7.8 percent from 8 percent.

Chinese Finance Minister Lou Jiwei signaled July 11 the world's second-biggest economy may expand less than the government's 7.5 percent target this year and that growth as low as 6.5 percent may be tolerable in the future.

Canada's economy is expected to grow 1.7 percent this year and accelerate to 2.4 percent growth in 2014. The U.S. economy will advance 1.8 percent and 2.7 percent this year and next.

Gold IPOs

"Companies that come to market are coming from sectors that work," said Brian Huen, managing partner at Red Sky Capital Management Ltd. in Toronto. He helps manage C$220 million with the firm, and participated in the offerings for Choice Properties, Information Services Corp., and Ski-Doo maker BRP Inc. (DOO) "People certainly aren't bringing any gold IPOs to market. So investors are focusing on buying deals in the right markets, as opposed to the wider market which has exposure to resources."

The underwriters have also done a good job of properly pricing IPOs, including underpricing in some cases, to create after-market demand that will send the stocks higher, Huen said.

"This is a one-time opportunity that you don't have in the public market," he said. "As long as the banks are pricing them properly and there's investor appetite, they will do well."

The weak returns of several REIT IPOs this year through July 12, including a 5 percent drop for WPT Industrial REIT and a 5.3 percent decline for Agellan Commercial REIT, has been a matter of timing, said Matthew Merkley, a lawyer who specializes in advising on REIT initial offerings with the firm Blake, Cassels & Graydon LLP in Toronto.

Wider Market

"The trading down, it's about the wider market and not about their individual performance," Merkley said.

Craig MacPhail, a spokesman with WPT Industrial, said Scott Frederiksen, chief executive officer at the company, could not immediately be reached for comment.

A voicemail message left with Frank Camenzuli, chief executive officer at Agellan Commercial, on July 12 wasn't immediately returned.

Dividend-yielding stocks, including REITs, utilities, telephone companies and industrials, slumped in June after the U.S. Federal Reserve said it may begin tapering its bond purchasing program as early as this year.

"The whole interest-sensitive sector has been greatly oversold," said David Baskin, president of Baskin Financial Services in Toronto. His firm manages about C$500 million. "People who got carried away selling will at some point recognize that the distributions of REITs are still much higher than you'll get from a bond."

REITs Slump

REITs, which are taxed differently by the government, invest in income-producing real estate and pay out most of their income to investors through unit distributions.

Since tumbling to an 18-month low on June 24, the S&P/TSX Capped REIT Index rallied 4.8 percent through July 12. The index, which tracks 15 of Canada's largest real estate trusts, has slipped 7.7 percent this year, compared with a 30 percent plunge in materials stocks.

"Choice went to market recently and it's sort of clogged the pipeline of new REITs a bit, cast a bit of a shadow," Merkley said. "I expect we'll see a lot of pent-up supply and demand come the fall."

BRP, a former division of Bombardier Inc. (BBD/B) that manufactures jet skis and other recreational vehicles, is the best-performing IPO stock in Canada this year, soaring 24 percent to C$26.61 from its initial offering of C$21.50 on May 22. It doesn't pay a dividend. Information Services, which provides registry services to the province of Saskatchewan, has risen 3.1 percent since trading began on July 9.

Market Share

"We believe BRP should trade at a premium to its competitors given its strong brand equity, leading market share and top-ranked position in several power sports categories," said Anthony Zicha, analyst with Scotia Capital Inc., in a note to clients July 9.

Zicha initiated coverage of BRP with a sector outperform rating, the equivalent of a buy, and a one-year price target of C$29. He expects the company will increase its sales at a rate of 8.5 percent a year through 2015. The stock has six buys and one hold recommendation, according to data compiled by Bloomberg.

IPO stock performance in Canada remains mediocre when compared with global performance. Year-to-date, global IPOs of $100 million or more have advanced 12 percent in trading, compared with the 3.5 percent growth of Canadian IPOs. Canadian IPOs through the same period have underperformed world IPOs since 2005, data compiled by Bloomberg show.

"This is going to continue," said Paul Taylor, chief investment officer with BMO Harris Private Banking in Toronto. His firm manages about C$16.5 billion. "The factors that caused the Canadian equity market to falter are still in place and that is weak commodity prices and a housing market stalling. These are two things that the Canadian economy, equity market and by association the IPO market will struggle with. The opportunities are better elsewhere."

Saturated Market

With 12 REIT IPOs in Canada since the beginning of 2012 and at least another coming from retailer Canadian Tire Corp. (CTC) in the near future, Taylor said the market has become saturated.

"Throughout the year the windows of opportunity for IPOs will open or close," Bill Demers, the Canadian IPO leader for Ernst & Young LLP, said in a phone interview from Toronto.

The current window for REIT IPOs is "kind of closed for the next couple of months until people see REIT prices come back, which may not happen until this fall when people are less concerned about rates going up," said Tahiliani with McLean & Partners. "The rising tide lifts all boats, whether it's an IPO REIT or a regular REIT it will do well."

Is Samsung in Crisis Mode?

The following video is from Wednesday's installment of The Motley Fool's Weekly Tech Review, in which analysts Eric Bleeker and Jason Moser look at the biggest stories driving the tech sector this week.

According to South Korean news outlet ETNews, Samsung is in crisis mode over its fading Galaxy S4 sales. Samsung's realizing what Apple has been confronting -- namely, that high-end smartphone growth is at an end. The conglomerate's solution to the problem? Release more phones! As a point of contrast, it's in Apple's (NASDAQ: AAPL  ) DNA to do yearly releases. Could Apple benefit from Samsung's crisis?

Apple has a history of cranking out revolutionary products ... and then creatively destroying them with something better. Read about the future of Apple in the free report, "Apple Will Destroy Its Greatest Product." Can Apple really disrupt its own iPhones and iPads? Find out by clicking here.

The relevant video segment can be found between 0:00 and 3:16.

Top 10 Gold Companies To Invest In Right Now

Digesting votes of confidence from several compelling sources, investors bid up the Dow Jones Industrial Average (DJINDICES: ^DJI  ) , which rallied 123 points, or 0.8%, to close at 15,215 Tuesday.

One compelling source of confidence came from small-business owners, who in April were more optimistic about the economy than any time in the past six months. The second, arguably more influential catalyst of the day was David Tepper, the top-earning hedge fund manager last year. His enthusiastic comments about America's future on CNBC today sent markets markedly higher.

And in no sector was Tepper's influence clearer than financials, where the Dow's top gainer, Bank of America (NYSE: BAC  ) , resides. Shares surged 2.8% Tuesday after Tepper said Citigroup (NYSE: C  ) was his biggest holding and that he also held other domestic financials. On top of that, the threat from ongoing litigation continues to diminish in the sector, as today's news that a big lawsuit against Goldman Sachs (NYSE: GS  ) was thrown out buoyed shares.

Top 10 Gold Companies To Invest In Right Now: Iamgold Corporation(IAG)

IAMGOLD Corporation, together with its subsidiaries, engages in the exploration, development, and production of mineral resource properties worldwide. It primarily explores for gold, silver, zinc, copper, niobium, diamonds, and other metals. The company holds interests in eight operating gold mines, a niobium producer, a diamond royalty, and exploration and development projects located in Africa and the Americas. Its advanced exploration and development projects include the Westwood project in Canada; and the Quimsacocha project, which consists of 3 mining concessions covering an aggregate area of approximately 8,030 hectares in Ecuador. The company was formerly known as IAMGOLD International African Mining Gold Corporation and changed its name to IAMGOLD Corporation in June 1997. IAMGOLD Corporation was founded in 1990 and is based in Toronto, Canada.

Advisors' Opinion:

• [By Christopher Barker]

  Although I have not shed my long-standing contention that Yamana Gold offers one of the more deeply discounted vehicles for long-term gold exposure, lately my outlook for IAMGOLD has turned particularly bullish. With a looming spin-off of a 10% to 20% stake in the company's reliably profitable Niobec niobium mine, and the recent sale of its interest in a pair of high-cost gold operations in Ghana for $667 million, IAMGOLD finds itself in terrific financial shape to execute an aggressive $1.2 billion expansion imitative at existing operations.

  Considering the $1.6 billion net asset value (after tax) that IAMGOLD recently assessed for the Niobec mine alone, and a presumed hoard of more than $1.2 billion (in cash, cash equivalents, and gold bullion held for investment), at a market capitalization of $6.9 billion I find extreme comfort in the market's resulting valuation for IAMGOLD's 15.2 million ounces of attributable gold reserves.

Top 10 Gold Companies To Invest In Right Now: First Majestic Silver Corp.(AG)

First Majestic Silver Corp. engages in the production, development, exploration, and acquisition of mineral properties with a focus on silver in Mexico. The company owns interests in La Encantada Silver Mine comprising 4,076 hectares of mining rights and 1,343 hectares of surface land located in Coahuila; La Parrilla Silver Mine consisting of mining concessions covering an area of 69,867 hectares; and San Martin Silver Mine comprising approximately 7,841 hectares of mineral rights and approximately 1,300 hectares of surface land rights located in Jalisco. It also holds interests in Del Toro Silver Mine consisting of 393 contiguous hectares of mining claims and an additional 129 hectares of surface rights located in Zacatecas; Real de Catorce Silver Project comprising 22 mining concessions covering 6,327 hectares located in San Luis Potosi state; and Jalisco Group of Properties consisting of mining claims totalling 5,240 hectares located in Jalisco. The company was founded in 1979 and is headquartered in Vancouver, Canada.

Advisors' Opinion:

• [By Goodwin]

  The shares closed at $88.19, down $1.1, or 1.23%, on the day. Its market capitalization is $77.08 billion. About the company: Siemens AG manufactures a wide range of industrial and consumer products. The Company builds locomotives, traffic control systems, automotive electronics, and engineers electrical power plants. Siemens also provides public and private communications networks, computers, building control systems, medical equipment, and electrical components. The Company operates worldwide.

• [By Sy_Harding]

  First Majestic Silver is one of the purest silver plays on the market. The company owns and operates three primary silver mines in Mexico: La Parrilla, San Martin, and La Encantada.

  Shares of AG have risen more than 60% for the year.

  First Majestic generates 85% of its revenue through the production and sale of silver. The rest of the company's revenue is generated through gold, lead, and zinc.

  First Majestic expects to increase total silver output from its operations to 7.5 million ounces of silver in 2011, and up to 16.0 million ounces by 2014.

Best High Dividend Stocks To Own Right Now: Australian Dollar(AU)

AngloGold Ashanti Limited primarily engages in the exploration and production of gold. It also produces silver, uranium oxide, and sulfuric acid. The company conducts gold-mining operations in South Africa; continental Africa, including Ghana, Guinea, Mali, Namibia, and Tanzania; Australia; and the Americas, which include Argentina, Brazil, and the United States. It also has mining or exploration operations in the Democratic Republic of the Congo, Guinea, and Colombia. As of December 31, 2010, the company had proved and probable gold reserves of 71.2 million ounces. The company has a strategic alliance with Thani Dubai Mining Limited to explore, develop, and operate mines across the Middle East and parts of North Africa. AngloGold Ashanti Limited, formerly known as Vaal Reefs Exploration and Mining Company Limited, was founded in 1944 and is headquartered in Johannesburg, South Africa.

Advisors' Opinion:

• [By Mel Daris]

  AngloGold Ashanti (AU), a South African company, is trading for $33 and pays a dividend which yields 3.20%. The stock has an astonishing P/E of 1,015. Its net income totaled $112 million last year, but negative cash flows of $620 million. It holds net tangible assets of $4.3 billion and its balance sheet has not grown nearly as quickly as the other companies on this list. AngloGold has two new mines coming online in Congo and Colombia.

Top 10 Gold Companies To Invest In Right Now: Goldcorp Incorporated(GG)

Goldcorp Inc. engages in the acquisition, exploration, development, and operation of precious metal properties in Canada, the United States, Mexico, and Central and South America. It produces and sells gold, silver, copper, lead, and zinc. The company was founded in 1954 and is headquartered in Vancouver, Canada.

Advisors' Opinion:

• [By Smith]

  Although its name does little to denote this, Goldcorp is a well-positioned silver play for 2011, according to the analysts we surveyed.

  “The name is one that people tend to think of it as gold, but it's in the top 20 of silver producers globally with about 13 million ounces a year ,” says Peter Sorrentino of Huntington Funds.

  Morningstar analyst Min Tang-Varner recently raised her fair value estimate for Goldcorp by $12 a share to $48 after the company reported a 28 per cent rise in revenue for the third quarter ended Sept. 30 compared with the year before.

  This, despite 4 per cent decline gold production, as revenue received a boost from $1,239/oz realized gold prices and $19.15/oz silver prices.

  Tang-Varner tells investors that the reduction of Goldcorp's cash cost by $100/oz from the prior quarter to $260/oz due to higher silver, copper and zinc production and the run-up in their prices, was “rather extraordinary.”

  Sorrentino says Goldcorp is a stock that investors would be “wise to consider” if they were looking for a name that would be discovered suddenly as a major silver play, without feeling that they were overpaying for it.

  Goldcorp also prices everything that it does in Canadian dollars, which should reduce currency risks for investors in Canada.

• [By Christopher Barker]

  Every ship needs an anchor, and for gold investors looking to navigate the admittedly rough seas of the gold mining industry, I can think of no greater anchor than Goldcorp. With the important caveat that some of the company's substantial challenges faced during 2012 could present further selling pressure in early 2013 as forward production guidance takes a bit of a haircut, I agree with Credit Suisse analyst Anita Soni that any such weakness may present a meaningful buying opportunity. I won't go into great detail here, since investors can access my premium research report on Goldcorp for further discussion of the substantial long-term investment opportunity in the shares of this quality producer.

• [By Rahemtulla]

  Headquartered in the Olympic venue of Vancouver, GoldCorp (GG)
  is one of the largest precious-metal mining companies in the world. GG operates mainly in Canada and South America, and produces more than 2.3 million ounces of gold annually, and has about 45 million ounces in proved and probable reserves. But don’t be fooled by the name — GoldCorp also owns 1.2 billion ounces of proved and probable silver reserves and 1.4 billion pounds of copper reserves.

  Every investor is aware of gold’s record run recently, but that’s just one reason I’m bullish on GG. Silver and copper prices
  have been on a tear lately, and the diverse mining operations of GoldCorp make it a great investment right now no matter what happens with gold.

Top 10 Gold Companies To Invest In Right Now: Newmont Mining Corporation(Holding Company)

Newmont Mining Corporation, together with its subsidiaries, engages in the acquisition, exploration, and production of gold and copper properties. The company?s assets or operations are located in the United States, Australia, Peru, Indonesia, Ghana, Canada, New Zealand, and Mexico. As of December 31, 2009, it had proven and probable gold reserves of approximately 93.5 million equity ounces and an aggregate land position of approximately 27,500 square miles. The company was founded in 1916 and is headquartered in Greenwood Village, Colorado.

Top 10 Gold Companies To Invest In Right Now: Golden Star Resources Ltd(GSS)

Golden Star Resources Ltd., a gold mining and exploration company, through its subsidiaries, engages in the acquisition, exploration, development, and production of gold properties. It owns and operates the Bogoso/Prestea gold mining and processing operation that covers approximately 40 kilometers of strike along the southwest-trending Ashanti gold district in western Ghana; and the Wassa open-pit gold mine located to the east of Bogoso/Prestea in southwest Ghana. The company also has an 81% interest in the Prestea underground gold mine located in Ghana. In addition, it holds interests in various gold exploration projects in Ghana, Sierra Leone, Burkina Faso, Niger, and Cote d?Ivoire, as well as holds and manages exploration properties in Brazil in South America. The company was founded in 1984 and is based in Littleton, Colorado.

Advisors' Opinion:

• [By Curtis]

  Golden Star Resources, Ltd Com (AMEX:GSS): This equity had 10,766,183 shares sold short as of Aug 31st, as compared to 9,400,663 on Aug 15th, which represents a change of 1,365,520 shares, or 14.5%. Days to cover for this company is 3 and average daily trading volume is 3,419,976. About the equity: Golden Star Resources Ltd. is a mid-tier gold mining company. The Company’s operating mines are situated along the Ashanti Gold Belt in Ghana, West Africa.

Top 10 Gold Companies 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 10 Gold Companies To Invest In Right Now: NEW GOLD INC.(NGD)

New Gold Inc. engages in the acquisition, exploration, extraction, processing, and reclamation of mineral properties. The company primarily explore for gold, silver, and copper deposits. Its operating properties include the Mesquite gold mine in the United States; the Cerro San Pedro gold-silver mine in Mexico; and the Peak gold-copper mine in Australia. The company also has development projects, including the New Afton gold, silver, and copper project in Canada; and a 30% interest in the El Morro copper-gold project in Chile. The company was formerly known as DRC Resources Corporation and changed its name to New Gold Inc. in June 2005. New Gold Inc. was founded in 1980 and is headquartered in Vancouver, Canada.

Advisors' Opinion:

• [By Christopher Barker]

  This stock has set the gold standard for share price appreciation among gold miners, advancing more than 140% since I introduced Fools to the new face of New Gold back in January 2010. Looking out over the long-term horizon, New Gold has constructed a gorgeous development pipeline to complement its trio of producing gold mines, featuring: a low-risk 30% stake in Goldcorp's El Morro project in Chile, the New Afton copper and gold project in British Columbia (with production scheduled to begin mid-2012), and the recently acquired Blackwater project north of New Afton.

  Although I expect the Blackwater deposit to expand considerably with further exploration, the project's initial indicated gold resource of 1.8 million ounces already leaves New Gold in command of 14.7 million ounces of measured and indicated gold resource. Tossing in copious supplies of by-product metals -- most notably 83.5 million ounces of silver and 3.5 billion pounds of copper -- New Gold is positioned to enjoy consistently low production costs throughout its sustained growth trajectory.

• [By Vatalyst]

  New Gold Inc. is listed on the Toronto Stock Exchange, and the NYSE under the symbol NGD. New Gold has a portfolio of global assets in the United States, Mexico, Australia, Canada and Chile as an intermediary gold producer. NGD gained 159% this year. With market capitalization at $4.5 billion, NGD shows a trailing P/E ratio of 25.3x. New Gold has a 30% interest in El Morro copper-gold Project in Chile and is expected to earn $0.21 per share next year.

Top 10 Gold Companies To Invest In Right Now: Agnico-Eagle Mines Limited(AEM)

Agnico-Eagle Mines Limited, through its subsidiaries, engages in the exploration, development, and production of mineral properties in Canada, Finland, and Mexico. The company primarily explores for gold, as well as silver, copper, zinc, and lead. Its flagship property includes the LaRonde mine located in the southern portion of the Abitibi volcanic belt, Canada. The company was founded in 1953 and is based in Toronto, Canada.

Advisors' Opinion:

• [By Vatalyst]

  With headquarters in Canada, Agnico-Eagle is a gold producer that has been around for a while with operations in Canada, Finland and Mexico and the United States that has paid a cash dividend for 29 consecutive years. AEM gained 25% over the year and reported 83.5% growth in quarterly earnings. It has a market capitalization of $11.4 billion and a trailing P/E ratio of 34x with expectations of earning $0.55 per share. AEM, like other operators like it, are likely a better bet than ETF trust options like SPDR Gold Shares (GLD).

Top 10 Gold Companies To Invest In Right Now: Northgate Minerals Corporation(NXG)

Northgate Minerals Corporation, together with its subsidiaries, engages in exploring, developing, processing, and mining gold and copper deposits in Canada and Australia. Its principal producing assets include 100% interests in the Fosterville and Stawell Gold mines in Victoria, Australia; and the Kemess South mine located in north-central British Columbia, Canada. The company was formerly known as Northgate Exploration Limited and changed its name to Northgate Minerals Corporation in May 2004. Northgate Minerals Corporation was founded in 1919 and is headquartered in Toronto, Canada.

Advisors' Opinion:

• [By Barker]

  I'm not the only Fool who perceives compelling value in the shares of this 90-year-old gold company. My colleague Andrew Sullivan made Northgate his inaugural selection within the Fool's Rising Star Portfolio Series. With anticipated production from Young-Davidson beginning in early 2012, and consistent exploration success at multiple properties, I consider this recently stagnant stock among the clearest rising stars in the gold patch.

• [By Cutler]

  Northgate Minerals Ltd Common (AMEX:NXG): This equity had 11,186,665 shares sold short as of Aug 31st, as compared to 12,721,260 on Aug 15th, which represents a change of -1,534,595 shares, or -12.1%. Days to cover for this company is 2 and average daily trading volume is 6,342,426. About the equity: Northgate Minerals Corporation is a gold and copper mining company. The Company has mines in areas of Canada and Australia.

• [By Christopher Barker]

  I've been reminding Fools to consider positioning for Northgate Minerals' golden explosion for months, and patient gold investors continue to await the day when Northgate's powerful prospects are more fully reflected in the shares. Construction of the critical Young-Davidson mine continues right on schedule, and first production now stands about two quarters away. That means Northgate is reasonably likely to achieve its 2012 production target of 300,000 ounces, followed by 350,000 ounces in 2013. Meanwhile, Northgate recently drilled "one of the best holes ever intersected on the property" -- featuring 4.31 grams of gold per ton over a very wide 79.6-meter segment -- from a new discovery zone outside of the existing 2.8 million-ounce reserve.

  If Young-Davidson were Northgate's sole asset, these shares would still be undervalued here at about $2.60 per share. With a preliminary assessment looming for the reworked Kemess Underground project, a new drill program at the Awakening Gold project in Nevada, and two operating gold mines in Australia, Northgate figures among the clearest bargains in the gold patch.